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What is the variable rate

    Assignment Instructions

    Assignment ID: FG133136167

    Question – Melissa’s Pie factory recorded the following information from last months operation:



    Cost of Sales


    Gross Profit











    Hourly Wages






    Total Expenses


    Net Profit


    The management at Melissa’s classified Cost of Sales and Hourly Wages as Variable Costs. Salary, Rent, Insurance and Depreciation are classified as Fixed Costs. Marketing expense was split equally between FC and VC; and Utilities is split 40% FC and 60% VC. Using this information, calculate the following:

    What is the Variable Rate?

    a. .52

    b. .48

    c. .55

    d. .98

    What is the TFC?

    a. $206,000

    b. $429,166.67

    c. $52,020.20

    d. $533,333.33

    What is the BE$?

    a. $206,000

    b. $429,166.67

    c. $52,020.20

    d. $533,333.33

    What is the BE Units if the USP is $8.25?

    a. $206,000

    b. $429,166.67

    c. $52,020.20

    d. $533,333.33

    What sales level would Melissa’s have to achieve if their desired profit is $50,000?

    a. $206,000

    b. $429,166.67

    c. $52,020.20

    d. $533,333.33

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