Joyce Murphy Runs A Courier Service In Downtown Seattle She Charges Clients 0 50 Per Mile Driven Joyce Has Determined 1 (101.83 KiB) Viewed 35 times
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 2,800 miles in a month, her total operating cost is $800. If she drives 5,800 miles in a month, her total operating cost is $1,250. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $380 + $0.15 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 6,000 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 22 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose Joyce took a week off and her sales for the month decreased by 22 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month. (Round your intermediate calculations and final answer to 4 decimal places. (i.e. .123456 should be entered as 12.3456%.)) Effect on Profit % < Required 2 Required 3 >
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit Contribution Margin per sales unit 21% $32 Lens A Lens B 37 24 Lens C 42 37 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $194,000. 3. Determine how many units of each product must be sold to generate a profit of $82,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine how many units of each product must be sold to generate a profit of $82,000. (Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number. Round weighted-average contribution margin per unit to 2 decimal places.) Units of A Units Units Units of B Units of C Units
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