Alicia Hatcher operates a kiosk on the beach selling children's swimwear. All swimsuits are sold...
Question:
Alicia Hatcher operates a kiosk on the beach selling children's swimwear. All swimsuits are sold as single units (no mix and match colors, etc.) The fixed costs of her cart, rental fees on the boardwalk, etc. are $4,200 per month. Currently, she is selling the swimsuits for $14.00 each and orders them from her supplier for $11.00 each.
Currently, Alicia isn't taking any salary as her company gets off the ground. How many swimsuits does Alicia need during the month to BEGIN earning a profit?
A. 1,399 swimsuits
B. None of the other answers
C. 1,400 swimsuits
D. 300 swimsuits
E. 1,401 swimsuits
F. 382 swimsuits
Beak-even point in units is computed as follows:
Break-even point in units = Fixed costs to be incurred during a given period / (Selling price obtained- variable cost incurred per unit on average)
Answer and Explanation:
Become a Study.com member to unlock this answer! Create your account
View this answerSee full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate the Break-Even Point - Definition & Formula
from
Chapter 5 / Lesson 28
159K
See how to calculate break-even point (in units and dollars). See the variables of the break-even point formula and examples. Understand the purpose of break-even analysis.
Related to this Question
- Rachel's Beach Shoppe charges tourists to use their credit cards to purchase merchandise at the vacation store. On Monday, Rachel sold $2,500 in merchandise to tourists that used their credit cards to purchase beachwear at the store. The bank charges Rach
- Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $28 each, and her variable costs are $18 per basket. She incurs $12,500 in fix
- Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $29 each, and her variable costs are $19 per basket. She incurs $12,100 in fix
- Lacey sells hand-knit scarves at the flea market. Each scarf sells for $50. Lacey pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. What total revenue amount does sh
- Lacey sells hand-knit scarves at the flea market Each scarf sells for $50. Lacey pays $30 to rent a vending space for one day The variable costs are $15 per scarf. What total revenue amount does she n
- Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $16,000. Presented below are three independent cases related to the equipment. a. Geddes paid cash for the equipment 8 days after the purchase. The vendor's credit term
- Lacey sells hand-knit scarves at the flea market. Each scarf sells for $50. Lacey pays $30 to rent a vending space for one day. The variable cost is $15 per scarf. What total revenue amount does she need to earn in order to break even?
- Schopp Company makes swimsuits and sells these suits directly to retailers. Although Schopp has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for
- Tuff Kids Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $30 and $21 in variable costs of goods sold. The company has fixed manuf
- Lauren purchases a set of barber shop chairs for her business. the chairs cost $770 total and she pays an additional $40 to the shipping company on delivery. Her invoice from the reseller has 2/10 EOM terms. If the invoice is dated june 22 and she pays th
- ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). Fixed costs for the period were the cost of goods sold $ 960,000, and selling and administrative
- Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $15,700. Presented below are three independent cases related to the equipment. a) Geddes paid cash for the equipm
- Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $16,200. Presented below are three independent cases related to the equipment. (a) Geddes paid cash for the equipm
- Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $16,000. Presented below are three independent cases related to the equipment. (a) Geddes paid cash for the equipm
- Tuff kids jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $30 with $21 in variable cost of goods sold. The company has fixed manuf
- Rachel Rey recently opened her own basket weaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of their own. Rachel has put together a varie
- Schopp Company makes swimsuits and sells these suits directly to retailers. Although Schopp has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. The market resea
- Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $46 throughout the country to loyal alumni of over 3,000 schools. Sunland's variable costs are 43% of sales, fixed costs a
- Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. How many scarves should she sell each day in order to break even?
- Margaret sells hand knit scarves at a flea market. Each scarf sells for $30. Margaret pays $40 to rent a vending space for one day. The variable costs are $20 per scarf. How many scarves should she sell each day in order to break even? A. 30 scarves B.
- On December 27, 2016, Roberta purchased two tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost $325 and had a fair market value
- Kelly catering company was recently faced with a make or buy decision for cakes the company sells to its customers. Kelly was quoted a purchase price that was significantly below its avoidable cost to
- Casey's Cases sells cell phone cases in a mall kiosk. Casey charges $30 per case. The variable cost for a case, including the case, the royalty paid to the mall, and so on is $26. The monthly fixed cost for Casey's Cases is $2,480. Required: a. How many
- Pam runs a shop in Florida, where sales often taper off during the summer. She sells two main products, surfboards and water suits. The surfboards provide contribution margin of $550 each, while the w
- Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $62,000 cash and office equipment valued at $37
- Adria Lopez expects second quarter 2014 sales of her new line of computer furniture to be the same as the first quarters sales reported below without any changes in strategy. Monthly sales averaged 38
- On March 10, 2017, Nash Company sold to Barr Hardware 160 toolsets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Nash allows Barr to return any unused toolsets within 60 days of purchase. Nash estimates that (1) 10 s
- Tuff Kids Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $30 with $21 in variable costs of goods sold. The company has fixed manu
- Sevall Surfware is a company that specializes in selling towels, swimsuits, and beach
- Tuff Kids Jeans Company sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $30 with $21 in variable costs of goods sold. The company has fixed
- Kate Corporation operates a store that sells uniforms. The following are the transactions that occurred during the first quarter of operations- Jan. 1 to Mar. 31, 2014. Jan. 1 Kate issues 20,000 shar
- Clark and Ellen on a lighting store keeping their displays lit that requires a lot of electricity. The store's electric bill is comprised of the following fees: $45.00 customer charge, $0.010 fuel adjustment charge, $0.069 per kWh energy charge for the fi
- Martha Company incurred the following expenditures to buy a new machine: Invoice $ 29,000 less 11% cash discount. Freight charges $ 510 Assembly charges $ 1,000 Special base to support-machine $ 505
- Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $27 each, and her varia
- Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory sysem Cost per UnitTotal Marc
- Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $70,000 cash and office equipment valued at $10
- Misu Sheet, the owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on cost instead of on selling price. What is Misu's cost? Misu's C
- Adria Lopez expects second quarter 2014 sales of her new line of computer furniture to be the same as the first quarter's sales (reported below) without any changes in strategy. Monthly sales averaged
- Melissa Valdez is planning to expand her clothing business by opening another store. In planning for the new store, Melissa believes that selling prices and costs of the various products sold will be similar to that of the existing store. In fact, she thi
- Metlock sells softball equipment. On November 14, they shipped $4,900 worth of softball uniforms to Grouper Middle School, terms 5/10, n/30. On November 21, they received an order from Douglas High School for $2,100 worth of custom-printed bats to be prod
- Bigelow Industries manufactures swim caps. Their operating leverage is 3. Each cap sells for $10 and has a contribution margin of $6. They expect to sell 37,500 swim caps. Their fixed costs are: A. $55,000 B. $75,000 C. $112,500 D. $150,000
- Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project. The T-shirts are printed with a special Kemp School logo. In some years, the supply of T-shirts has been insuffi
- Susan Ortiz operates a covered parking structure that can accommodate up to 600 cards. Susan charges $6 per hour for parking. Parking attendants cost $12 per hour each to staff the cashier's booth at
- Tuff Kids Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of 30 dollars with 21 dollars in variable costs of goods sold. The company
- Fiona, a regional sales manager, works from her office in State U. Her region includes several states, as indicated in the sales report below. Fiona is compensated through straight commissions on the sales in her region and a fully excludible cafeteria pl
- Michelle's Major Retail Outlet is a company that specializes in selling Shirts, Vests and Hats. The sales mix is 4:4:2 (i.e. for every 4 Jeans sold, 4 Jackets and 2 Scarves are sold). | |Selling Pric
- The Eagles sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,100 schools. Their variable costs are 41% of sales; fixed costs are $118,000
- YiCo buys 800 cases of tennis balls listed at $130 per case and for which YiCo is given a 15% volume discount. YiCo sells 70% of the cases for cash. The cost of the unsold merchandise is: a. $15,600 b. $31,200 c. $26,520 d. $77,350
- Juliet Burke, a former professional tennis star, operates Juliet s Tennis Shop at Mitchell Lake Resort. The following transactions were completed in April. April 4 - Purchased racquets and balls from Miles for $840, FOB shipping point, terms 2/10 n/30 Apr
- Abigail's Bake Shop produces cheese breadsticks. The company expects to sell 3,000 packages of cheese breadsticks in January, 2,800 packages in February, and 3,200 packages in March. There are 300 packages in the beginning inventory on the first of Januar
- Wilton sells softball equipment. On November 14, they shipped $3,500 worth of softball uniforms to Paola Middle School, terms 1/10, n/30. On November 21, they received an order from Douglas High Schoo
- Wright sells softball equipment. On November 14 they shipped $1000 worth of softball uniforms to Paola Middle School terms 2/10 n/30. On November 21 they received an order from Douglas High School for $600 worth of custom printed bats to be produced in De
- Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $10,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.) (a)
- Susan Ortiz operates a covered parking structure that can accommodate up to 600 cars. Susan charges $6 per hour for parking. Parking attendants cost $12 per hour each to staff the cashier's booth at S
- Adria Lopez is considering the purchase of equipment for Success Systems that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $300,000 an
- Barbara transfers $10,000 cash and machinery having a $5,000 basis and a $35,000 FMV to Moore Corp. in exchange for 50 shares of Moore stock. The machinery was used in Barbara's business, originally cost Barbara $50,000 and is subject to a $28,000 liabili
- Teresa is an accomplished actress. During the summer, she rented a vacant store to stage productions of four plays, using the local townspeople as actors and stagehands. She sold $24,000 of tickets to the various plays. Her expenses included $10,000 for c
- Marigold Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expense
- Agnes operated a Christmas Shop in Atlantic City, NJ. She makes a weekend trip to Vero Beach, FL, for the purpose of determining the feasibility of opening another shop. Her travel expenses are $2,000
- Sweet baby diaper company sells disposable diapers for $0.20 each. Variable costs are $0.05 per diaper, while fixed costs are $75,000 per month for volumes up to 950,000 diapers and $112,500 per month for volumes above 950,000 diapers. Prepare a flexible
- Sandhill Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,100 schools. Sandhill's variable costs are 41% of sales; fixed costs
- Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,600 kits was prepared for the year. Fixed operating expenses account for 64% of total operating expenses at this lev
- What is the number of jungle gyms sold at break-even? Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $10
- Diedre Chevis sells furniture to DuBois Furniture Company. Chevis is having financial problems and takes $500 that she received from a customer. She rang up the sale through the cash register. What will alert Betsy DuBois, the controller, that something
- Diedre Chevis sells furniture for DuBois Furniture Company. Chevis is having financial problems and takes $500 that she received from a customer. She rang up the sale through the cash register. What will alert Betsy DuBois, the controller, that something
- Chris's Televisions produces television sets into three categories: portable, midsize, and flat-screen. On January 1, 2017, Chris adopted dollar-value LIFO and decided to use a single inventory pool.
- Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 100 cookies.
- Trina makes handmade leis in Hawaii which she sells to local tourists. She anticipates August to be a busy month with the sale of 500 leis. She has prepared the following static budget for August: Sales revenue (500 units) $5,000 Variable costs: Direct ma
- Chill Out Novelties sells ice cream bars from a kiosk near campus. Fixed costs are $390 per week and the variable cost is $.50 per ice cream bar. Complete the following table for the levels of ice cream bars sold per week.
- Franklin Sports received a special order for 1,000 units of its bicycles at a selling price of $250 per bike. Franklin has enough extra capacity to accept the order. No additional selling costs will be incurred. Unit costs to make and sell this product ar
- Sweet Baby Diaper Company sells disposable diapers for 0.20 cents each. Variable cost are 0.05 cents per diaper, while fixed costs are $75,000 per month for volumes up to 950,000 diapers and $112,500 per month for volumes above 950,000 diapers. Prepare a
- A shop sells soccer balls at a Selling Price of $100 per ball. The Cost per ball is 60% of the Sales Price per ball. The shop is closed during weekends. For a week the sales were: Monday 3 balls, Tuesday 2 balls, Wednesday 4 balls, Thursday 1 ball, Friday
- | | |Projected Sales in Units | | |T-Shirt Sizes |Sales Price |June| July |August | Youth |$12 |350 |450 |675 |Adult-regular| 16| 650| 825| 825 |Adult-oversized |17 |400 |550 |350 Company manufactu
- Patsy's Quilt Shoppe sells homemade quilts. Patsy buys the quilts from local artisans for $230 each, and her shop sells them for $430 each. She also pays a sales commission of 4% of sales revenue to h
- Matoaka Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $49 throughout the country to loyal alumni of over 1,400 schools. Matoaka's variable costs are 42% of sales; fixed costs a
- A company purchased 80 kitchen tables on May 1, 2014. The tables were purchased for $300 each with terms 2/10, net 30. The chairs were shipped FOB destination. If Kari paid for the purchase on May 9th, how much cash was exchanged, and what is the amount o
- Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe's variable costs are 41% of sales; fixed costs a
- Trish's Quilt Connection is an online company specializing in high-quality quilt frames and accessories. Trish does not charge customers shipping charges for quilt frame orders. She has provided the following information: Month Quilt Frames Sold Shipping
- Maria meets all of the requirements of 1237 (subdivided realty). In 2015, she begins selling lots and sells four separate lots to four different purchasers. She also sells two contiguous lots to anoth
- Carol owns a small curio shop that is incorporated as an S corporation. Her three children, Sara, age 16, Mark, age 19, and Corey, age 22, all help in the shop. Which of the children's wages are subject to FICA taxes? 1. None of the wages are subject to
- Kerri Battle, the owner of Tulip Time, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, the Battle wants to set the delivery fee bas
- Ariel LeBec, of Ariel's Sandwich Shoppe, sells Po' Boy sandwiches and soda from a sidewalk cart in a popular park near her home in New Orleans. She sets up her rented cart in the summers to raise mone
- Mary traded furniture used in her business to a furniture dealer for some new furniture. Mary originally purchased the furniture for $45,000 and it had an adjusted basis of $20,000 at the time of the exchange. The new furniture had a fair market value of
- Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 100 cookies. Assume that Angie can sell the cracked cookies for $1.
- Belltown Athletic Supply (BAS) makes game jerseys for athletic teams. The F.C. Kitsap soccer club has offered to buy 140 jerseys for the teams in its league for $13 per jersey. The team price for such
- Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 820 kits was prepared for the year. Fixed operating expenses account for 33% of total operating expenses at this leve
- Sixteen years ago, Biff, Buffy, and Buffy, Jr. organized Beach Wear Inc. (BWI) to sell beachwear throughout California. The sole class of common stock of BWI is owned by Buffy (60%) and her husband, B
- Misu Sheet, the owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on the selling price. What are the most that Misu can pay for a comforter?
- Matt Schmidt has spent $750 for a tent, table, and chairs for his lemonade stand. He figures he can sell a glass of lemonade in the park to little league players for $0.75. His cost per drink is estim
- Presented below are selected transactions of Federer Apparel. Federer sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Lynda Company for CHF5,000, terms 2/10, n/30 3 L
- In two unrelated transaction Laura exchanges property that qualifies for like kind exchange treatment. In the first exchange Laura gives up office equipment purchased in May 2013 (adjusted basis of $2
- Bramble Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,980 kits was prepared for the year. Fixed operating expenses
- Atlas Company builds swimming pools. Atlas budgets that they will build 14 pools during the month of April at a price of $20,138 per pool. Actual pools built by Atlas during April were 12 pools at a price of $21,477 per pool. What is the Master Budget Va
- Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expense
- Hannon Company makes swimsuits and sells these suits directly to retailers. Although Hannon has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. (a) Assume that
- Paige Company estimates that unit sales will be 11,000 in quarter 1, 12,800 in quarter 2, 15,000 in quarter 3, and 18,900 in quarter 4. Management desires to have an ending finishe
- Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses
- Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $60 with $40 in variable costs of goods sold. The company has fixed ma
- Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity/so
- Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $8 per hour. During the first week of March, each worker worked 40 hours
Explore our homework questions and answers library
Browse
by subject