Answer:
23.81
Step-by-step explanation:
GIVEN: The school play this year was minutes long. Last year the school did a different play that was
minutes long.
TO FIND: By what percent did the school play increase in duration this year.
SOLUTION:
Length of play this year minutes
Length of play last year minutes
increase in length of play this year minutes
percent increase in length of play
Hence there is increase of 23.81% in length of play.
Answer:
a) At break even point, Q = 380 units, Sales dollar = $5247.8
b) Margin of safety at Q = 400 units is 0.05 × 100 = 5
c) Number of cakes that need to be sold before a profit of $2200 is made = 595 cakes
Step-by-step explanation:
Let the number of units be Q
Cost equation = (fixed cost) + (Variable cost)
Fixed Cost = $3898.8
Variable Cost = Variable cost per unit × number of units produced = (2.32 + 1.11 + 0.12) × Q = 3.55Q
Cost equation = 3898.8 + 3.55Q
Revenue = price per unit × number of units sold = 13.81 × Q = 13.81Q
At break even point,
Total cost = Revenue
3898.8 + 3.55Q = 13.81Q
10.26Q = 3898.8
Q = 380 units
In sales dollars, R = 13.81Q = 13.81 × 380 = $5247.8
b) Margin of safety = 100 × (Current sales - Breakeven point sales)/(current sales)
Breakeven point sales = $5247.8
At Q = 400 units, Current sales = 13.81 × 400 = $5524
Margin of safety = 100 × (5524 - 5247.8)/5524 = 5
c) number of cakes that Cove must sell to generate $2,200 in profit.
Profit = Revenue - Total Cost
2200 = 13.81Q - (3898.8 + 3.55Q)
2200 = 10.26Q - 3898.8
10.26Q = 2200 + 3898.8 = 6098.8
Q = 594.4 = 595 units
