accounting help please w correct answers 414187
Pete’s Pet Products is a sole proprietorship owned by Pete Thompson. The store provides a full line of pet products, including food, grooming materials, toys, leashes, etc. The company also sells hand made pet houses, including dog houses, bird cages, and cat castles. Each of the pet houses is being evaluated in terms of cost volume profit. See the relevant information below:
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accounting help please w correct answers 414187
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Bird cage |
Cat castle |
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Sales Price |
$140 |
$95 |
$160 |
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Variable cost |
$65 |
$34 |
$56 |
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Fixed monthly cost |
30% |
25% |
45% |
When Pete uses a distributor to sell additional pet houses, he has to pay a sales commission of 8% of the sales price. On average, he sells 60% of each pet house through distributors. The fixed costs (shown above) are based on estimated design time for each product. Pete’s store averages $32,000 of fixed costs per month.
Refer to the Course Schedule within the Syllabus for specific project deliverables and due dates.
DELIVERABLE
Based on the information presented above, please answer the following questions. Use Excel for this assignment. Complete your calculations using the Excel features and simply type in narrative answers.
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Dog House |
Bird Cage |
Cat Castle |
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Sale Price |
$ 140.00 |
$ 95.00 |
$ 160.00 |
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Variable Cost |
$ 65.00 |
$ 34.00 |
$ 56.00 |
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Fixed Monthly Cost |
$ 9,600.00 |
$ 8,000.00 |
$ 14,400.00 |
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Contribution Margin |
$ 75.00 |
$ 61.00 |
$ 104.00 |
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Total Monthly Fixed Cost |
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QUESTION 2 |
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Dog House |
Bird Cage |
Cat Castle |
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Break Even Units |
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QUESTION 3 |
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Dog House |
Bird Cage |
Cat Castle |
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Sale Price |
$ 140.00 |
$ 95.00 |
$ 160.00 |
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Variable Cost |
$ 65.00 |
$ 34.00 |
$ 56.00 |
|
Fixed Monthly Cost |
$ 9,600.00 |
$ 8,000.00 |
$ 14,400.00 |
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Units Sold |
750 |
335 |
640 |
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Total Sales |
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Total Sales Through Distributors @ 60% |
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Sales Commison Paid @ 8% |
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Contribution Margin |
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QUESTION 4 |
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Dog House |
Bird Cage |
Cat Castle |
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Sales Commison Paid @ 12% |
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Differnce between 12% and 8% |
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Recommended cost changes |
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QUESTION 5 |
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Dog House |
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Sales Price |
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Variable Cost |
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Advertisment Monthly |
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Fixed Monthly cost |
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Contribution Margin |
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