RQ 2

Vegi Juice is sold in the supermarket at $12 per case. Each case has 10 bottles of Vegi juice. The total variable costs per case are $10. what is the $C of the Vegi juice per bottle?

$0.20 $C=12-10=$2 per case = 2/10=0.20 per bottle

Panda Inc. had total sales of $24,000 from bamboo bowls in 2017. The company sold 6,000 units of bamboo bowls and the total variable costs were $6,000. What is the total $C of bamboo bowls?

$18,000 total $C=total sales - total variable costs = 24000-6000=18,000

Panda Toys Inc. plans to sell one line of its panda toys for $20. The material cost per unit is $4 and unit labor cost is $6. The annual overhead fixed costs are $500,000 and the promotion and advertising cost is $100,000. If the unit selling price is increased to $22, what is the $BEP for the company?

$1,100,000 rvs $C=new USP of $22 - UVC of (4+6)=$12, TFC=500+100=600,000. RVS #BEP=600,000/12=50,000, RVS $BEP=50,000*22=1,100,000

Macy's sells skirts at $50 each and it sells 5 more at $40 each. What is the $ markdown for each additional skirt sold?

$10 50-40=10

A manufacturer makes a product for $8 and adds a 25% profit on cost. the wholesaler then sells it for 33.33% markup based on retailer purchase price. the retailer marks it up by 25% on consumer purchase price and sells the product to the consumer. What is the total $ channel markup in going from manufacturer's selling price to retailer selling price?

$10 manufacturer makes for $8, then %muc=25%. F3, SP=10.00 wholesaler buys for 10, then %musp, F2, USP=15 retailer buys for 15, then %musp=25%, USP=20 difference between manufacturer SP of $10, and retailer SP of $20 is $10.

ABC mfg co has estimated breakeven volume of 50,000 units for its new widget. If fixed costs are $100,000, unit selling price is $25.00 and ABC sales force commission is 8% of selling price, what is their $contribution per unit?

$2.00 #BEP=TFC/$C. $C=TFC/#BEP here, $C=100,000/50,000=2.00

Snowflake Inc. sells its ice skates to the wholesalers at $200 a box. Each box has 5 pairs of ice skates. The wholesalers add $10 to each pair of ice skates and sell them to the retailers. The retailers sell each pair at 10%muc. What is the cost to the retailer per pair of ice skates?

$50 retailer buys each box for 200+(10*5)=250 for 5 pairs, one pair costs 50

Sunny Wonderland sells its books to the wholesalers at $8 each, which sells it to the retailers at the 10% muc. The retailer sells the books to the consumers at 15%musp. Which of the following markup chain formulas correctly computes the purchase price of the consumers?

$8*(1+10 %muc)/(1-15 %musp)

A manufacturer sells each unit for $8 to a wholesaler who marks up by 25% on their purchase price. Afterwards, the wholesaler sells the widget to retailers, who typically mark up by 33.33% on the wholesaler selling price. here, the correct markup chain for retail selling price is:

$8*(1+25%) * (1+33.33%)

Sunny Wonderland sells its books to the wholesalers at $8 each, which sells it to the retailers at the 10% muc. The retailer sells the books to the consumers at 15%musp. What is the cost to the wholesalers?

$8.80 wholesaler sells and retailer buys for FY3 = 8*(1+10%)=8.80

Which of the following statements on channel markup is not correct?

% markup based on cost in less than %markup based on selling price

Panda Toys Inc. plans to sell one line of its panda toys for $20. The material cost per unit is $4 and unit labor cost is $6. The annual overhead fixed costs are $500,000 and the promotion and advertising cost is $100,000. What is the %C of this panda toy line?

50% $C=usp of 20 - uvc of (4+6)=10. %C=10/20=50%

Sunshine company manufactures 100,000 table fans every year with a unit selling price of $20. The direct material cost for a table fan is $5, and direct labor cost is $4. The factory overhead is $150,000 and the administrative costs are $200,000. The company also expends $150,000 on advertising every year. What is the %C of a table fan?

55% $C=11, %C=11/20=55%

Macy's sells 12 skirts at $50 each and it sells 5 more at $40 each. What is the %markdown here?

6.25% %markdown=$markdown/total revenue = 50/800=6.25

Consumers buy swimming goggles at $20 per pair. The retailer sells the goggles at a 20%musp. the manufacturer adds $2 to its cost and sells to the wholesaler. What is the selling price of the manufacturer?

Cannot calculate

It is January 2018 and John needs to estimate $ annual sales target for his new line of premium all natural ice creams. While the unit selling price is not yet set, John has a good estimate of total fixed costs. he also knows the gross margin % from the just concluded 2017 income statement and desired 2018 % profit/sales objective. Please help John.

Reduce %gm by the desired %profit/sales. then divide TFC by that

A wholesaler purchases widgets for $8 per unit from the manufacturer and sells it to retailers who then sell to consumers. The wholesaler marks up by 20% on the retailer purchase price, while the retailers mark up by 25% on the wholesaler selling price. Here, the correct markup chain for calculating the retail selling price to the consumer is:

[$8/(1-20%)] * (1+25%)

If the consumer' purchase price is known, you could work toward the manufacturer's selling price using:

bottom up and backward are both correct

Advise NT Inc. Cost*(1+%muc) calculates the same thing as which of the following?

cost/(1-%musp)

Brand A has same %C, but lower $C compared to Brand B. You have proposals for increasing the fixed cost for each brand by the same $ amount. Which of these is correct?

incremental (or delta) breakeven dollars will be the same for both brands #BEP=TFC/$C and $BEP=TFC/%C

You are explaining the similarities between income statement and contribution analysis to a client. Net contribution may be treated as approximately equivalent to:

net profit

Advise NT Inc. Which of these is typically treated as a MARKETING variable cost?

sales force commission

John's Hardware, a small retailer in your part of town, would like to determine selling price of a new glue gun. the store's customary % markup is based on JH's selling price. Naturally, JH also know the manufacturer's selling price. Please help the store?

selling price = cost / (1-%markup) markup based on JH selling price = &musp since they know their cost (purchase price), JH should determine usp using F2. SP= cost/(1-&musp)

If the manufacturer's selling price is known, you could work towards the consumer's purchase price using:

top down and forward are both correct

You are explaining the similarities between Income statement and contribution analysis to a client. Gross Profit as reported in a typical income statement may be treated as approximately equivalent to:

total $C