Chapter 3 Post-Quiz

Chapter 3 Post-Quiz - Debs Merchandising has the following...

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Pedro Cakes expects to sell 3,000 cakes a month. He estimated the following monthly costs Variable Costs $ 7,500 Fixed costs $15,000 1. What sales price per cake does he need to achieve to begin making a profit if he sells the estimated monthly amount of cakes? $7.50 $7.50 $5.00 $2.50 2. In his first month of operation Pedro achieves $24,000 in sales by selling 3,000 cakes. What is his break-even sales dollars? $48,000 $22,500 $21,819 $22,818 24,000/3,000 = $8/unit – 2.50 = 5.50 CM/unit 15,000/$5.50 = 2,727.27 units * 8 =
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Unformatted text preview: Debs Merchandising has the following information: Material cost per unit 24 Transportation-in (per case of 100 units) 300 Advertising 50,000 Rent 20,000 Salaries 80,000 3. Deb wants to sell her boondoggle keychains with a mark0up of 60% of her variable product cost. What is the recommended selling price $38.40 $43.20 $518.40 $24.00 4. With a selling price of $48/unit how many boondoggle keychains does Deb have to sellin order not to suffer a loss 7,143 3,125 5,555 5,143...
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This note was uploaded on 04/07/2008 for the course ACCT 202 taught by Professor Wessels during the Spring '06 term at Clemson.

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