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22108 Accounting and Accountability - Spring 2025 2. PRACTICE Final Exam - 22108 - Spring 2022

Multiple fill-in-the-blank

Break-even and cost-volume profit (time recommendation: 12 minutes) The HD team have provided you with the following information: The business plans to start with 3 different donuts - Product 1 is the Iced Vovo donut, Product 2 is the Mint Slice donut and Product 3 is the Pride Rainbow donut. The raw materials variable costs for each donut are: Product 1 $2.50, Product 2 $2.85, Product 3 $2.90 The labour variable costs for each donut are: $1.50, $1.50 and $2 respectively The business has fixed costs that include rent $500 per month, utilities $275 per month and sales staff wages of $2800 per month. To attract new customers and to signal that the products are high quality and luxury, the team has decided that donuts will be priced at $8 each.  The co-founders have decided that they wish to aim for $850 profit when they open. You are required to prepare the cost-volume-profit analysis for HD using the table below.  (each box is worth 0.5 marks) Be sure to fill in every box. Enter numbers to 2 decimal places. Do not use dollar signs or commas. For example, if your answer is $15.50, enter "15.50" in the box. Cost information Product Revenue Variable Cost Contribution Margin Product 1 - Iced Vovo [Fill in the blank] [Fill in the blank] [Fill in the blank] Product 2 - Mint Slice [Fill in the blank] [Fill in the blank] [Fill in the blank] Product 3 - Rainbow Pride [Fill in the blank] [Fill in the blank] [Fill in the blank] The sales mix is 4 : 2 : 5 How many of each donut do they need to sell to break even in a month? Enter your answers into the table below (each box is worth 0.5 marks) Enter your answer in whole donuts only. Do not use commas.For example, if your answer is 5,000 you should enter "5000" Sales projections Product Targeted sales Product 1 - Iced Vovo [Fill in the blank] Product 2 - Mint Slice [Fill in the blank] Product 3 - Rainbow Pride [Fill in the blank]

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The question asks for a cost-volume-profit analysis with a given sales mix and profit target, but no multiple-choice options are provided to analyze. I will outline the full reasoning and calculations you would perform to fill in the table and determine break-even quantities, then show the expected numeric results that follow from the data. First, restate the key data and compute per-unit figures that drive the CVP analysis.: - Selling price per donut: 8.00 - Variable costs by product: P1 (Iced Vovo) 2.50 materials + 1.50 labour = 4.00; P2 (Mint Slice) 2.85 + 1.50 = 4.35; P3 (Rainbow Pride) 2.90 + 2.00 = 4.90 - Contribution per unit by product: P1 8.00 − 4.00 = 4.00; P2 8.00 − 4.35 = 3.65; P3 8.00 − 4.90 = 3.10 - Fixed costs: rent 500 + utilities 275 + sales staff wages 2800 = 3575 - Target profi......Login to view full explanation

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