Reference no: EM131979592
Swift Start is a gas tank additive guaranteed to put a "tiger in your tank", as Exxon commercials once boasted. Its production has the following fixed and variable costs. It is priced at $5.00 per gallon to begin with:
Fixed costs (per year) Variable Costs per gallon
Rent $12000 Volatile Fluids $1.00
Utilities 1800 Mfg. Labor .10
Managerial salaries 16800 Advertising .25
Computer services 19200 Packaging .15
Other fixed expense 1080 Inert ingredients .50
Total fixed $50880 Total $2.00
1. What is the annual breakeven production quantity (use above data, show work)?
2. What revenue would the sale of the breakeven quantity for $5 per gallon generate?
3. How many gallons (at $5 each) must be sold to earn $100000 above breakeven? (show your calculations)
4. Management believes that only 25000 gallons can be sold in a year. What price per gallon needs to be charged to pay the fixed costs and earn $100000 more (variable costs remain as initially given)(show your work)?
5. What is the Contribution Margin Ratio (CMR) if the price per gallon is $7.00
6. If a price of $9.00 per gallon is charged and it is desired to earn $100000 above fixed costs, what will the DOL be if only 25000 gallons is sold?
|
Determine the cost recovery for the asset
: ACCT 321 Homework - On August 20, 2014, Hazel sold the asset. Determine the cost recovery for 2014 for the asset
|
|
How many total shares are outstanding
: Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000.
|
|
Draw a graph showing marginal cost
: Draw a graph showing Marginal Cost, Average Total Cost, Average Fixed Costs, and Average Variable Costs of dairy farmers and milk processors.
|
|
Sleeping problem with an alternative intervention
: To design a well-defined study question we need to compare two intervention. From above information we are going to compare new intervention
|
|
What is the annual breakeven production quantity
: 1. What is the annual breakeven production quantity (use above data, show work)? 2. What revenue would the sale of the breakeven quantity for $5 per gallon
|
|
What is the maximum sales loss
: What is the maximum sales loss that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution
|
|
What positive value of q will maximize total profit
: What positive value of Q will maximize total profit? Remember, letting MR = MC signals the objective of total profit maximization. Solve MR = MC for Q.
|
|
Determine how the available cash to be distributed
: Determine how the available cash to be distributed at the end of April, May, and June according to the plan developed in Part 1
|
|
Prepare the consolidated adjustments
: Prepare the consolidated adjustments for Ocean Blue Ltd and its controlled entity on 30 June 2018, and offset deferred tax liabilities as at 30 June 2018.
|