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See pages 000 to 000
of the Annotated Instructor’s
Edition for general suggestions related to the chapters
(L.O. 1, 2)
in Part One. S 1 10/5/09 11:09:29 PM 10/22/09 10:34:03 PM REVISED PAGES Part II 100 (L.O. 3) Cost Analysis and Estimation 331. Using Microsoft Excel to Perform CVP Analysis
PAR
Refer to the data for Cambridge, Inc., in Exercise 324. T 1 Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Cambridge sell to break even?
b. What number must Cambridge sell to make an operating proﬁt of $6,000 per month?
(L.O. 3) Orientation 332. Using Microsoft Excel to Perform CVP Analysis
Refer to the data for Balance, Inc., in Exercise 326. Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Balance, Inc., sell to break even?
b. What number must Balance, Inc., sell to make an operating proﬁOrganizing Yourself
Preparing and t of $8,000 per month?
(L.O. 4) 333. CVP with Income Taxes
for Success in College
Crest Industries sells a single model of satellite radio receivers for use in the home. The radios have
the following price and cost characteristics:
Sales price . . . . . . . . . . .
Variable costs . . . . . . . . .
Fixed costs . . . . . . . . . . . $
80 per radio
$
32 per radio
$360,000 per month Crest is subject to an income tax rate of 40 percent.
Required
a. How many receivers must Crest sell every month to break even?
b. How many receivers must Crest sell to earn a monthly operating proﬁt of $90,000 after taxes?
CHAPTERS (L.O. 4) IN PART ONE 334. Multiproduct CVP Analysis
Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the
1 Making Yourself Successful in College
following prices and cost characteristics:
Regular Coffee
Latte
Approaching College Reading and
Sales price (per cup) . . . . . . . . . . Developing a CollegeLevel Vocabulary
....
$1.50
$2.50 2 Variable costs (per cup) . . . . . . . . . . . . 3 .70 1.30 Approaching College Assignments: The monthly ﬁxed costs at Rio are $6,720. Based on experience, the manager at Rio knows that the
Reading
store sells 60 percent regular coffee and 40 percent lattes. Textbooks and Following Directions
Required
How many cups of regular coffee and lattes must Rio sell every month to break even?
(L.O. 4) 335. Multiproduct CVP Analysis
Mission Foods produces two ﬂavors of tacos, chicken and ﬁsh, with the following characteristics:
Chicken
Selling price per taco . . . . . . . . . . .
Variable cost per taco. . . . . . . . . . .
Expected sales (tacos). . . . . . . . . . Fish $3.00
$1.50
200,000 $ 4.50
$ 2.25
300,000 ✓ Related Resources
See pages 000 to 000
of the Annotated Instructor’s
Edition for general suggestions related to the chapters
in Part One. Required
The total ﬁxed costs for the company are $117,000.
a. What is the anticipated level of proﬁts for the expected sales volumes?
b. Assuming that the product mix would be 40 percent chicken and 60 percent ﬁsh at the breakeven point, compute the breakeven volume.
c. If the product sales mix were to change to four chicken tacos for each ﬁsh taco, what...
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 Spring '07
 MEJIAS
 Contribution Margin, CVP analysis

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