Solution-What is the variable rate

What is the variable rate

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Reference no: EM133136167

Question - Melissa's Pie factory recorded the following information from last months operation:

Sales	$560,000.00
Cost of Sales	$134,200.00
Gross Profit	$425,800.00

Expenses
Salary	$90,000.00
Rent	$60,000.00
Marketing	$12,000.00
Insurance	$12,000.00
Hourly Wages	$124,000.00
Utilities	$45,000.00
Depreciation	$20,000.00
Total Expenses	$363,000.00
Net Profit	$62,800.00

The management at Melissa's classified Cost of Sales and Hourly Wages as Variable Costs. Salary, Rent, Insurance and Depreciation are classified as Fixed Costs. Marketing expense was split equally between FC and VC; and Utilities is split 40% FC and 60% VC. Using this information, calculate the following:

What is the Variable Rate?

a. .52

b. .48

c. .55

d. .98

What is the TFC?

a. $206,000

b. $429,166.67

c. $52,020.20

d. $533,333.33

What is the BE$?

a. $206,000

b. $429,166.67

c. $52,020.20

d. $533,333.33

What is the BE Units if the USP is $8.25?

a. $206,000

b. $429,166.67

c. $52,020.20

d. $533,333.33

What sales level would Melissa's have to achieve if their desired profit is $50,000?

a. $206,000

b. $429,166.67

c. $52,020.20

d. $533,333.33

Reference no: EM133136167

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What is the variable rate

Reference no: EM133136167

Reference no: EM133136167

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