The fixed cost per week of running the stand

Assignment Help Accounting Basics

Reference no: EM131124921

Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

a. Given her other assumptions, what level of sales volume will enable Julie to break even?
b. Given her other assumptions, discuss how a change in sales volume affects profit.
c. Given her other assumptions, discuss how a change in sales volume and variable cost jointly affect profit.
d. Use Excel's Formula Auditing tools to show which cells in your spreadsheet affect profit directly.

Reference no: EM131124921

Questions Cloud

What percentage of the time is the cashier busy : Beate Klingenberg manages a Poughkeepsie, New York, movie theater complex called Cinema 8. Each of the eight auditoriums plays a different film; the schedule staggers starting times to avoid the large crowds that would occur if all 8 movies started a..

Cost of goods manufactured : The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are ..

Why did some quality initiatives fail : Discuss personal experience in regard to quality improvement programs. If you have no experience, you should gain some from friends or work colleagues or-as a last resort-news articles.

What is the gain for u.s. producers : If the United States imposes a tariff of $3 per pound, what will be the U.S. price and level of imports? How much revenue will the government earn from the tariff? How large is the deadweight loss?

The fixed cost per week of running the stand : Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

Why must firms adopt the identified roles : In general, identify senior management's specific role in these large-scale strategic quality programs? Cheerleader? Role model? Decision maker? Resource provider? What else?

A reaction that is taking place at equilibrium : The Keq for the reaction shown below 2.6x102, therefore the reactants will be favored at equilibrium glucose-6-phosphate + water -> glucose + phosphate

Departmentalization is hybrid of the functional : The matrix approach to departmentalization is a hybrid of the functional and the divisional approaches, and it seeks to give equal emphasis to both. Imagine some type of global business you would like to run, and write a short essay that summarizes h..

Write paper on ethics-sustainability or stakeholder topic : Write a paper on ethics, sustainability, or stakeholder topic of your choice. Your task is to research and present the topic and then discuss ways a company with which you are familiar can leverage the topic to create a more effective organization.

User Account

All Pages