a. How many pizzas must he sell each month to break even under these conditions? b. If he is confident that he can sell 80 pizza per month, how much must he charge for each pizza to break even?
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- Gloria is planning on opening a cake shop. She has found a location that rents for $15,550 per year and it will cost her another $13,716 to furnish the shop and purchase all the necessary equipment. She plans on charging $20 for a cake and it will cost her $3 per cake for ingredients and $1.92 per cake for decorations and $1.59 per cake for the beautiful, colorful to-go boxes. What is the dollar breakeven point she will need to earn to cover her costs in the first year? Round to the nearest whole number.Billy Bob just paid cash for a run-down bed & breakfast in upstate New York. He plans to refurbish it and then start a heavy duty marketing campaign to bring in the tourists. Your task is to help him figure out how many rooms he has to rent each night to break even. Here are the key assumptions you will need to complete the analysis: -Billy Bob’s cost of just keeping the B & B open for business in $500.00 per day. (Rent and Utilities) -He has 10 rooms available to rent. -He calculates the variable cost of renting a room to be $20.00. (Maid Service, towel and sheet cleaning) -He figures he can rent a room for $125.00 per night. 1. Assuming he rents all 10 rooms, what is Billy-Bob's total fixed cost per day. (Remember fixed cost is the cost that doesn’t vary with sales or production.) 2. Assuming Billy Bob rents all 10 rooms, what is his variable cost for the day? (Remember variable costs changes with sales and production). 3. What is Billy Bob’s total cost for the day when he…Business calculations 1. Your best friend, Mario, makes the most awesome pizza in town! He’s decided to open a pizza shop and needs some advice. He expects his pizzas to cost about $4 to make and he plans to sell them for $10 apiece. He’s going to rent a small space for cooking, which will cost him $200 per month. He also plans to spend $60 per month on advertising. Utilities for his space are expected to be $100 per month. a. How many pizzas must he sell each month to break even under these conditions? b. If he is confident that he can sell 80 pizza per month, how much must he charge for each pizza to break even? 2. a. Using the information in (1a), above, how many pizzas must he sell to make 8% net income on his sales revenue? b. Using the information in (1b), above, how much must he charge per pizza to make 8% net income on his sales revenue? 3. a. Mario isn’t comfortable with the current numbers. He thinks he can reduce his costs to…
- Lou buys bottles of water from the grocery store, but is now considering the environmental ramifications of the waste. He is considering getting a water filtration system in his home, but it will cost $1.000, which would mean he would take out a small loan at 7% interest for one year. If bottled water costs $7 a week, what would be the difference in the costs after one year?Suppose, you start your own business which is a pet store. The total cost of purchasing supplies and hiring labor is $50,000 per year. To run the pet store, you quit your job that pays $45,000 per year and use the building that you already own (a building like yours rents out for $60,000 per year). Also, your car payment is $24,000 per year (you may use your car for the business sometimes). What is the total opportunity cost of opening up a pet store for a year?Having recently graduated with a visual arts degree, Zane is considering starting a new business in this field, selling exotic artwork. He believes he can sell each piece of artwork for an average price of $600. The suppliers of the artwork will be paid a commission of 25% of the price. Artwork will be packed and delivered to the customer. Zane estimates that packing and delivery costs should be about $30 per product. There will be additional expenses associated with running the store. Rent will be $5,400 per month. Utilities (which it is assumed will not vary from month to month) will be $990 per month. Insurance and other expenses will be $750 per month. He plans to pay himself and one sales assistant salaries of $10,500 per month ($7,500 for himself and $3,000 for his assistant). The tax rate is assumed by Zane to be 30%. Required: a. Based on the information how many pieces of artwork per month would Zane need to sell to break even? Show all workings. b. If Zane wanted to earn a…
- You run a school in Florida. Fixed monthly cost is $5,220.00 for rent and utilities, $5,974.00 is spent in salaries and $1,762.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $612.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,325.00, salaries to $6,544.00 and insurance to $2,172.00 per month. Variable cost per student will increase up to $157.00 per month. However you can charge $1,180.00 per student. At what point will you be indifferent between your current of operation and the new option? PLEASE SHOW EASIEST MOST SIMPLE WAY TO FIND THE ANSWERAshley is a fresh graduate and is now planning to start a new business. She would run an online shop to sell snacks imported from Japan. She expects the annual purchase cost would be $380,000 and the annual sales would be $790,000. Four sets of computers are needed, which cost $7,000 each and could be sold at half price in the second-hand market after one year. She has to rent a small office, which costs her $19,000 per month. (i) Calculate the annual accounting profit of Ashely's snack business. (ii) Ashley will be involved in the daily operations of this snack business and has to give up the opportunity to get a full-time job. În consideration of annual economic profit, in what condition should Ashley start this business? Explain with relevant figures.You run a school in Florida. Fixed monthly cost is $5,128.00 for rent and utilities, $5,990.00 is spent in salaries and $1,478.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $708.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,370.00, salaries to $6,095.00 and insurance to $2,136.00 per month. Variable cost per student will increase up to $171.00 per month. However you can charge $1,193.00 per student. You want to determine in percent the new charge compared to the previous charge. To calculate this, divide the new charge per student by the previous charge per student, keep in a decimal form and round to 3 decimal points. Submit Answer format: Number: Round to: 3 decimal places.
- Set up and solve an equation for the following business situation. You are moving to a new home and have rented a truck to assist you with the move. Trailside Truck Rentals charges $39.95 per day plus 65 cents per mile. You will need the truck for 5 days and will travel 460 miles. What will be your total cost (in dollars) for the truck rental? $ If you have budgeted $450 for the truck rental, will this amount be sufficient to cover the cost? O yes noJustin is starting a new business making cheesecakes forsell at One Eleven Food Hall. He spent $ 35 to buy allpans you will need to create your cheesecakes and you havedetermined that the ingredients will cost you $ 6.50 percheesecake. Justin can spend a maximum of $ 125 on cheesecakeingredients this week. What is the maximum number ofcheesecakes Justin can make this week?You run a school in Florida. Fixed monthly cost is $5,201.00 for rent and utilities, $6,083.00 is spent in salaries and $1,053.00 in insurance. Also every student adds up to $95.00 per month in stationary, food etc. You charge $653.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,480.00, salaries to $6,166.00 and insurance to $2,034.00 per month. Variable cost per student will increase up to $173.00 per month. However you can charge $1,155.00 per student. How much do you currently charge per student? Submit Answer format: Number: Round to: O decimal places.