Answer:
1.$400.00 2.$4,000.00
Step-by-step explanation:
Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee’s are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don’t have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them.
Cost Classification: The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures.
Advertising Fees = $4,000
Labor = $400/month
One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.
Packaging Supplies = $3,000
Office Supplies = $800
Phone and Internet Service = $115/month
Product Supplies = $9,000
Shipping Fees = $1,000/month
Conference Exhibitor Fee = $3,000
Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200
Utilities for the Home Workshop = $105/month
Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79.
is divided by
the remainder is 11 (option D is correct). To find the remainder after division by
you have to use another synthetic division. Actually,
then the remainder is 119 (option C is false).
the expression
is
and
(option A is correct). You cannot state the same when
(option B is false).
nor
because the remainders in both cases are not equal to 0 (options E and F are false).