Get Instant Help From 5000+ Experts For

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

Financial analysis and case study of BrÃ¼ski Ice Cream

## Calculating missing values

1.Calculate the missing values (6 marks)
Unit Selling Price    Variable Cost per unit    Unit Sales    Total Contribution Margin    Total Fixed Costs    Net Income
A)
8    150,000    300,000    200,000    B)
30    C)
180,000    800,000    750,000    D)
20    14    E)
120,000    F)    20,000

2.Breski Company had the following revenue and costs in the most recently completed fiscal year:
Total Revenue (“sales”)    12,000,000
Total Fixed Costs    2,000,000
Total Variable Costs    6,000,000
Total Units Produced and Sold    800,000
a)What is the contribution margin per unit? (2 marks)

b)What is the sales volume at the break-even point?  (2 marks)

c)How many units must be produced and sold for the company to have a net income of \$1,000,000 for the year? (5 marks)

3.Breski Publishing is doing a financial feasibility analysis for a new book.  Editing and pre-production costs are estimated at \$45,000.  The printing costs are a flat \$7,000 for setup plus \$8 per book.  The author’s royalty is 8% of the publisher’s selling price to bookstores.  Advertising and promotion costs are budgeted at \$5,000.

a)If the price to bookstores is set at \$30 how many books must be sold to break even?

b)The marketing department is forecasting sales of 4800 books at the \$30 price.  What will be the net income from the project at this volume of sales?

c)The marketing department is also forecasting that if the \$30 price is reduced by 10%, unit sales will be 15% higher.  What will be the net income from the project at this volume of sales at the reduced price?

d)In a highest cost scenario, fixed costs might be \$5000 higher and the printing costs might be \$9.00 per book, still keeping the original \$30 price/unit.  How many books would your break-even volume increase by?

PART B: CASE ANALYSIS – Brüski Ice Cream
Total possible marks: /30

INSTRUCTIONS: Please read the case carefully and answer the questions by typing below the question.

CASE