201-Quiz2-Version1(Pink)-S'10 (1)

201-Quiz2-Version1(Pink)-S'10 (1) - How many customers are...

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Name (Please print): Section: Management 201 - Spring 2010 – Quiz 2 - Chapter 8 (CVP) Version 1 (Pink) Logical work must be shown on any question to receive positive points. You may not use calculators that can store information or communicate with someone. Cheating on a quiz will result in failure of the course. 1. The Rapid Meal has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together total $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food is $1.40 per customer; other variable costs are $1.80 per customer. The income tax rate is 30%.
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Unformatted text preview: How many customers are needed to earn an after-tax net income of $105,000? Number of customers: 2. Goldman Company retails two products, a standard and a deluxe version of a luggage carrier. The budgeted income statement is as follows: Standard Carrier Deluxe Carrier Total Sales in units 150,000 units 50,000 units 200,000 units Sales $ 3,000,000 $ 1,500,000 $ 4,500,000 Variable costs 2,100,000 900,000 3,000,000 CONTRIBUTION MARGIN $ 900,000 $ 600,000 $ 1,500,000 Fixed Costs 1,200,000 OPERATING INCOME $ 300,000 Compute the breakeven point in units, assuming that the planned sales mix is maintained: Standard Carrier units: Deluxe Carrier units:...
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201-Quiz2-Version1(Pink)-S'10 (1) - How many customers are...

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