Muy Bueno Bakery sells three different products. Currently they are not able to meet all of their customers' demand. Using the following information, determine the price of the cake needed to meet the same contribution margin as the cookies. Cake Pie Cookies Contribution margin $18 $11 $3 Production hours 2 1.5 .25 Variable cost $12 $7 $1 Contribution margin/hr. $9 $7.33 $12 Current selling price $30 $18 $5 a.$45 b.$30 c.$42 d.$36

Answers

Answer 1

Answer:

Answer:

d. $36

Explanation:

The Contribution margin is the net of selling price and variable cost of a product. It is calculated by deducting the variable cost from the selling price of a product.

Cake Pie Cookies

Current selling price $30 $18 $5

Variable cost $12 $7 $1

Contribution margin $18 $11 $3

Production hours 2 1.5 0.25

Contribution margin/hr. $9 $7.33 $12

Required Contribution margin per hour of cake = $12

Required Contribution margin = $12 x 2 = $24

Required Selling Price = Contribution margin + variable cost = $24 + $12 = $36

Note there is a mistake in the calculation of Contribution margin of Cookies as it is given $3 but after deducting the variable cost from selling price is should be $4 ( $5 - $1 ), I used the given contribution margin for the calculation.

Related Questions

Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):1. Issued stock for $623 cash (example). 2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account. 3. Paid $5,000 in principal and $300 in interest expense on long-term debt. 4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account. 5. Incurred $25,249 in shipping expenses, all on credit. 6. Paid $118,241 cash on accounts owed to suppliers. 7. Incurred $10,069 in marketing expenses; paid cash. 8. Collected $38,200 in cash from customers paying on their Amazon credit card account. 9. Borrowed $16,231 in cash as long-term debt. 10. Used inventory costing $111,934 when sold to customers. 11. Paid $830 in income tax recorded as an expense in the prior year.Required:For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.
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Suppose that Italy and Austria both produce fish and shoes. Italy’s opportunity cost of producing a pair of shoes is 5 pounds of fish, while Austria’s opportunity cost of producing a pair of shoes is 10 pounds of fish. By comparing the opportunity cost of producing shoes in the two countries, you can tell that _____ has a comparative advantage in the production of shoes, and ______ has a comparative advantage in the production of fish. Suppose that Italy and Austria consider trading shoes and fish with each other. Italy can gain from specialization and trade as long as it receives more than _______ of fish for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of shoes for each pound of fish it exports to Italy. Based on your answers to the previous question, which of the following terms of trade (that is, price of shoes in terms of fish) would allow both Austria and Italy to gain from trade? Check all that apply.(A) 8 pounds of fish per pair of shoes (B) 1 pound of fish per pair of shoes(C) 15 pounds of fish per pair of shoes(D) 3 pounds of fish per pair of shoes
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Gus buys cupcakes every saturday morning. when he walks into the bakery, he always orders by saying, "give me $10 worth of cupcakes." what does this tell you about gus's elasticity of demand for cupcakes?

Answers

Elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

a. Perfectly elastic - The good is perfectly elastic when the consumer is ready to buy any quantity at a fixed price.

b. Perfectly inelastic- The good is perfectly inelastic when the change in the price of the good has not effect on its demand, that is when quantity demanded is same at whatever price.

So, because here Gus is ready to buy any units of cupcakes at a fixed price of $10, the demand for cupcakes should be perfectly elastic.

Yummy Jams Company produces a line of jams. Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows: October 75,000 November 98,000 December 63,000 Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month. How much cash is paid in November for berry purchases (rounded to the nearest dollar)? a.$32,212 b.$19,963 c.$21,088 d.$28,900 e.$25,258

Answers

Answer:

The answer to this question is E. $25,258.

EB17. LO 7.5The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?

Answers

Answer:

$600 unfavorable

Explanation:

The budgeted cost of producing 14,000 units at $5.50 per unit and with fixed costs of $19,400 is:

$B = 14,000*5.50 + 19,400\nB= \$96,400$

The variance is given by subtracting the budgeted cost by the actual cost ($97,000):

$V= \$96,400 - \$97,000\nV= -\$600$

Since the variance is negative, the variance is unfavorable

Concord Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Concord Company uses the periodic inventory system.

Answers

Answer:

the numbers are missing, so I looked for a similar question:

Purchases Sales Units Unit Cost Units Selling Price/Unit

3/1 Beginning inventory 100 $40

3/3 Purchase 60 $50

3/4 Sales 60 $80

3/10 Purchase 200 $55

3/16 Sales 70 $90

3/19 Sales 90 $90

3/25 Sales 60 $90

3/30 Purchase 40 $60

the requirements are:

calculate COGS and ending inventory under FIFO, LIFO and weighted average.

since this company uses the periodic inventory level we must first determine the total cost of goods available for sale:

3/1 Beginning inventory 100 $40

3/3 Purchase 60 $50

3/10 Purchase 200 $55

3/30 Purchase 40 $60

total goods available for sale = 400 units, at a total cost of $20,400

total units sold = 60 + 70 + 90 + 60 = 280 units

ending inventory = 120 units

under FIFO:

ending inventory = (40 x $60) + (80 x $55) = $6,800

COGS = $20,400 - $6,800 = $13,600

under LIFO:

ending inventory = (100 x $40) + (20 x $50) = $5,000

COGS = $20,400 - $5,000 = $15,400

under weighted average:

ending inventory = ($20,400 / 400) x 120 = $6,120

COGS = $20,400 - $6,120 = $14,280

You are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55 for 60 months of financing. What is the dealer’s effective rate of return on this loan transaction?

Answers

Answer:

9.92%

Explanation:

First, find the Annual Percentage Rate (APR).

You can do this with a financial calculator using the following inputs;

PV = -24500

N = 60

PMT = 514.55

then CPT I/Y = 0.792% (this is a monthly rate)

APR = 0.792% *12 = 9.5%

Next, convert APR to EAR;

EAR = $(1+(APR)/(m)) ^(m) -1$

whereby m= number of compounding periods per year ;12 in this case.

EAR = $(1+(0.095)/(12)) ^(12) -1$

= 1.0992476 - 1

=0.0992476 or 9.92%

Therefore, the effective rate on this loan is 9.92%

Consider the following statement: "A consistent countercyclical policy has no effect on employment and output, since individuals will recognize those policies as systematic and will anticipate them correctly." This statement is most closely associated withSelect one:
a. classical theory.
b. Keynesian theory.
c. new classical theory.
d. monetarist theory.

Answers

Answer:

c. new classical theory.

Explanation:

The new classical theory belives that grow, countries must open their economies, entrepreneurial development (risk taking), privatize state owned enterprises, and reform labor markets, such as by decreasing the authority of trade unions.

Moreover it also focused that there is no effect on the employment and the result or outcome as individuals recognized the policies in the correct way so that it helps to anticipate them

Hence, the third option is correct

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__________ entail the performance of specialized activities by individuals or organizations for purposes of benefiting other entities (usually customers).

Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to consume 7 units of y, what must his income be? a.

Which of the following best describes the primary role of auditors in financial reporting? A. Consultants that are hired by company management to advise on key matters related to competition, product pricing, employee retention, and financial reporting strategies. B. Key employees of the company that actively participate on the management team in strategic planning, product development, and financial reporting. C. Government employees assigned by local officials to ensure accurate financial reporting and operational integrity by the company. D. Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles

On July 1 of the current year, Marcia purchases a new home and borrows $320,000. Marcia is required to pay two points on the loan. The loan is secured by the residence and the charging of points is an established business practice in the area. The term of the loan is 20 years, beginning on July 1 of the current year. How much, if any, of the points may Marcia deduct in the current year?