Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. 21 points. hickory farms is selling gift boxes

2. 21 points. Hickory Farms is selling gift boxes of their meat, cheese and crackers....

70.2K

Verified Solution

Question

Accounting

image
2. 21 points. Hickory Farms is selling gift boxes of their meat, cheese and crackers. They are targeting holiday gift- givers. The selling price of each gift box is $18 and the variable cost to Hickory Farms is $7.20 per gift box. Their fixed costs are $16,200. Answer each of the following questions related to Hickory Farms. Show all calculations. What is their contribution margin per gift box (2 points)? a. b. Develop a general formula that can be used to find the units needed to breakeven or eam a desired profit. Use "x" as the number of gift boxes (3 points). What is the breakeven point in number of gift boxes (2.5 points)? C. d. What is the contribution margin ratio (2.5 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students