  Home Study tools  My courses  My books My folder Career Life 

Find solutions for your homework Search

home / study / business / accounting / accounting questions and answers / the owner of an ice cream parlor was planning to expand his room. on…

Question: The owner of an ice cream parlor was planning to expand his … Post a question
Answers from our experts for your tough
homework questions

solve it very urgent Enter question

Continue to post
20 questions remaining

My Textbook Solutions
Instant access to step-by-step solutions for your
textbooks

Show transcribed image text

Expert Answer Add a

textbook
Add a
textbook
Add a
textbook

Sonali answered this

Was this answer helpful? 0 0
16,555 answers

a. Breakeven point = Fixed costs/Contribution margin per unit

Fixed costs = $40000 + $10000 + (2 x $10000) = $70000

Europe

included
c uded in tthe
Contribution margin per unit = $1000 - $300 = $700

from

e eend
Breakeven point (in units) = $70000/$700 = 100 kg

d pprice.
₹38,232*

ce
Breakeven point (in sales dollars) = 100 kg x $1000 = $100000

b. Current Profit = Contribution margin - Fixed costs = (500 kg x $700) - $70000 = $350000 - $70000 = $280000

c. Revised fixed costs = $70000 + $20000 + (30% x $10000) + $10000 = $103000

New breakeven point (in units) = $103000/$700 = 147.14 kg

Europe
included
c uded in tthe
Kindly round off as required since no instructions have been provided with the question regarding the same.

from
e eend
d pprice.
d. Revised sales = 1.1 x 500 = 550 kg

New profit/(loss) = Revised contribution margin - Revised fixed costs

₹37,117* ce

New profit/(loss) = (550 x $700) - $103000 = $385000 - $103000 = $282000 profit

Comment


Questions viewed by other students

Q: 2. As shown in the circuit, D is ideal, the input u;=8 sinotv, try to draw the wave for uo, and determine the maximum
of uo. R o + + 8V U. u + TT 2TT 3TT 4TT 0 Dov ио 0 TT 2TC 3TT 4TT
A: See answer
  Home Study tools  My courses  My books My folder Career Life 

Q: Solve it urgent

A: See answer

COMPANY

LEGAL & POLICIES

CHEGG PRODUCTS AND SERVICES

CHEGG NETWORK

CUSTOMER SERVICE

© 2003-2022 Chegg Inc. All rights reserved.