Chapter_3

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Unformatted text preview: ted Resources 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 3-31. Using Microsoft Excel to Perform CVP Analysis PAR Refer to the data for Cambridge, Inc., in Exercise 3-24. 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 3-32. Using Microsoft Excel to Perform CVP Analysis Refer to the data for Balance, Inc., in Exercise 3-26. 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) 3-33. 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 3-34. 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 College-Level 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) 3-35. 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 break-even volume. c. If the product sales mix were to change to four chicken tacos for each fish taco, what...
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This note was uploaded on 02/07/2014 for the course MIS 304 taught by Professor Mejias during the Spring '07 term at University of Arizona- Tucson.

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