Question

QUESTION 2

1. If the Souperman spoon selling price is $30

   The fixed costs are $1,365,900

   Contribution Margin = 29%

   What is the Break-Even point in spoons sold?

   Note: the dollar amount calculated for variable cost per unit from the data in this question will be used in questions 3-5

   	A.	13,204 spoons
   	B.	45,530 spoons
   	C.	64,127 spoons
   	D.	157,000 spoons

3 points   

QUESTION 3

1. If the price is increased by 11% per spoon in the above question what is the amount of Souperman spoons to be sold to Break Even? (The variable cost per unit remains at the dollar amount calculated in the above question)

   	A.	57,074 spoons
   	B.	113,825 spoons
   	C.	139,730 spoons
   	D.	150,249 spoons

3 points   

QUESTION 4

1. Cam Newton and the Duchess of Cornwall both buy new Black Rolls-Royce Phantom's for $505,500 each and depreciate the total cost evenly over 5 years.

   The annual depreciation is added to the total fixed costs.

   If Cam Bowles Soup Company kept the unit price with the 11% increase what is the new break even amount of Souperman spoons to be sold given the Phantom purchases.

   	A.	124,474 spoons
   	B.	130,675 spoons
   	C.	207,130 spoons
   	D.	337,000 spoons

3 points   

QUESTION 5

1. Cam and Camilla want their Phantoms and they want to split a million dollars too.

   How many Souperman spoons must be sold at $33.80 price to have income from operations be a cool $1,000,000? (using the same dollar amount variable cost/unit as questions 2-4)

   (with the one year depreciation expense from the Phantoms)

   	A.	205,448 spoons
   	B.	236,716 spoons
   	C.	255,675 spoons
   	D.	344,512 spoons

Answer 1

$30 spean Selling paice tesp cmtribuim margin (8t) @ aq C30) Variable cost /unit $21.3 Break even point in &poous Sold s Fixeol costs coubibution/spaon 136500 000281 157000 8poons 30, 7f it ts Selling inurdaed by 111. New Selling p7e 33.3 Variable cost /unit paile is 1-3) Conti buubi munit 12 Byeat eve point in units Sold 1365900 12 13 825 8 & poons

Con bibuti unit $ 12 spoor) depiedialion (1ear S05500 5 years Fixid co ss 136S900 lOl100 146000 uni k Sold Beak euer point in u600O 922 50 Spood $33.& Selling prie Variable COSE Cal3) Q.S Cosy Coatei but m to be Sold Lpovns in wme af $100000O. Num ber of optredry Carn an 1467000+ 100000D l2.S 14360 Spo07 to Ang wers Y a 5 3n my opinion Please Corect. are chek tho opti once