Recompute fixed costs. variable costs. and the BEP. What are the variable costs? What are the fixed costs? How many repasts will the WHDM plan demand to supply during the financial twelvemonth to make the BEP? How much net income will the plan earn if it completes its 45. 000-meal contract with the City of Westchester?

The variable cost of service is \$ 3. 93 during the financial twelvemonth the WHDM should supply 1. 011 repasts to make their BEP of \$ 3. 665. 76. The entire net income the plan will gain if it completes its contract of 45. 000 repasts is \$ 1. 859. 77. 1. The difference = deducting the depression from the high with the months given. 4. 900 – 3. 500 = 1. 400

The differences in costs = deducting the depression from the high clip period costs \$ 26. 000 – \$ 20. 500 = \$ 5. 500

The variable cost per unit = spliting the difference in cost by the difference in service \$ 5. 500 / 1. 400 = \$ 3. 93

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Entire variable cost = multiplying the variable cost by the low clip period 3. 500 ten \$ 3. 93 = \$ 13. 755.

Entire fixed cost = deducting the entire variable cost from the low clip period \$ 20. 500 – \$ 13. 755 = \$ 6. 745

Calculating the Break Even Point = Px = A + Bx = \$ 3. 665. 7 P will = \$ 5. 77 ( \$ 5. 77x – 6745 + \$ 3. 93x ) Ten will = \$ 1. 84 ( \$ 5. 77 – \$ 3. 93 – 6745 + ( \$ 3. 93 – \$ 3. 93 )
A will = 6. 745 ( \$ 1. 84x – 6745 )
B will= \$ 3. 93 ( \$ 1. 84x / \$ 1. 84x – 6754 / \$ 1. 84x )
BEP for twelvemonth = multiply BEP by 12
\$ 3. 665. 76 ten 12 = \$ 43. 989. 12

Number of repasts = deducting BEP for twelvemonth from entire contracted repasts WHDM plan net income 45. 000 = repast contract
1. 008 Gross
1. 008 Meals at \$ 5. 77= \$ 5. 816. 16
Entire Cost per repast 1. 008 at \$ 3. 93 = \$ 3. 961. 44
Entire Profit = entire cost of the repasts

Exercise 10. 2
The one-year wage of the parttime newssheet contriver is \$ 6. 000. The planner’s helper has an one-year wage of \$ 3. 900 ( 6. 000 + 3. 900 = 9. 900 ) . This is the sum of fixed cost. The variable cost per point for seting together six semimonthly newssheets is \$ 4. 50. The one-year cost would so be \$ 20. The Break Even Point Formula would be ( 20X + 9. 900 + 4. 50X and X = 639 ) . This BEP will assist the company make a net income from the newssheet because the helper can set together up to 650 newssheets.

x

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