Financial Accounting Target Variable Cost And Break Even Point Homework Help
- September 8, 2017
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- Category: Accounting QA
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1.The Sunrise Hotel has 200 rooms. Each room rents at $160 per night and variable costs total $35 per room per night of occupancy. Fixed costs total $80,000 per month.If the hotel spends an additional $10,000 in the month of February on advertising they feel that they can expect occupancy rate to increase by 10%. What would be the financial impact of spending this additional money on advertising for the month of February (28 days)?
2.The Sunrise Hotel has 200 rooms. Each room rents at $160 per night and variable costs total $35 per room per night of occupancy. Fixed costs total $80,000 per month.If 70% of the rooms are occupied each night in the month of February (28 days) what will total costs be for the month?
3.A company believes it can sell 6,000,000 of its proposed optical mouse for $14 each. There will be $7,500,000 in fixed costs associated with the mouse. If the company desires to make a profit of $3,000,000 on the mouse, what is the target variable cost per mouse?
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4.K-Henry’s Dull Diner has a contribution margin ratio of 16%. If fixed costs are $148,952, how many dollars of revenue must K-Henry’s generate in order to reach the break-even point?
5.A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?
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