Transcribed Image Text: 31. Leia is opening an elite pet grooming and spa business for celebrity pets in Beverly lls, CA. She will provide these services for $200 per pet
Transcribed Image Text: 31. Leia is opening an elite pet grooming and spa business for celebrity pets in Beverly lls, CA. She will
provide these services for $200 per pet visit. Variable costs to provide the service are $60 per pet visit
and fixed costs on the grooming spa location are $10,000 per month. are the breakeven number
of pets that Leia has to groom in a month and what would be the total monthly sales?
A. Breakeven = 72 pets per month; total sales = $14,400
50 pets per month; total sales = $10,000
= 72 pets per month; total sales = $10,000
D. Breakeven = 60 pets per month; total sales = $12,000
32. Alton Benes paints graduation pictures and then sells them in expensive frames. s average selling
price is $299 per painting. Variable costs to deliver a painting are $29 each and Alton’s fixed costs are
$2,000 per month. Alton currently sells 30 paintings per month and he cannot increase the number of
paintings sold per month, due to a lack of available time. If Alton wants to generate a profit of $10,000
per month, what would his average selling price per unit need to be?
33. A company has an unfavorable spending (flexible budget) variance for direct materials.
explanation of this is:
A. The company made more units than they had budgeted
B. The company used less material per product than they had budgeted
C. The company paid more per pound of material than they had budgeted
D. None of the above answers in correct
34. Your Aunt Mary recently found a painting in her closet that she purchased 20 years ago for $500.
She found out that the painting is now worth $50,000. annual rate of return did Aunt Mary earn
on this painting?
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