Reference no: EM131881413

Question: 1. Carlos Company sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00 and has variable cost of $12.00 per unit. Umbrella C sells for $9.00 and has variable costs of $6.00 per unit. Carlos sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Carlos?

2. Josie's Lunch Counter's employees know that they serve three meat and potatoes lunches for every two soup and salad lunches on a typical day. The variable costs for a meat and potatoes lunch total $2.30, while the variable costs for the soup and salad lunch are $2.85. The price for any lunch is $5.75. If fixed costs are $120,802, how many lunches must be sold for Josie's to earn a profit of $77,520?

3. Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000?

4. The president of Jackson Corporation will not receive a bonus next year unless the company's profits are at least $435,000. Jackson sells a single product at a price of $27 per unit. If variable costs are $12 per unit and fixed costs total $150,000, what amount of sales must Jackson generate in order for the president to receive a bonus?

5. Barking Dog Company has a contribution margin ratio of 21%. Barking Dog desires a profit of $315,000 and must cover fixed costs of $945,945. What level of sales must Barking Dog reach in order to achieve its goal?

6. During 2007, Bonzai Corporation reported total revenues of $891,640 and profit of $91,486. Fixed costs were $332,043, and 44,582 units were sold. If costs and prices are expected to stay the same in 2008, and Bonzai expects to sell 50,000 units, what will be the company's budgeted profit?