Cost-Volume-Profit Analysis Problem Hakim is the manager for Tahoe Bed and Breakfast. Hakim
is currently considering an upgrade to the breakfast service to attract more business that will add
$3 in variable costs to Tahoe's current variable costs of $15. Hakim is also proposing that a 10%
room rate increase (from $60 to $66 per room) will produce an increase in room rentals from 3,500
to 4,000 units. Fixed costs will remain at $126,000 for Tahoe. 1. Prepare the Break-even point and
Margin of Safety Ratio for Tahoe. Current After Changes Increase/Decrease Break-even point in
units Margin of Safety Ratio 2. Prepare the CVP Income Statement (Totals) for Tahoe. CVP
Income Statement: Sales revenes Less: Variable costs Contribution margin Less: Fixed costs
Profit/Loss begin{tabular}{|l|l|l|} hline multicolumn{1}{|c|}{ Aurrent } & & hline & & hline & & hline &
& hline & & hline & & hline end{tabular}Ch18 Case Study Assignment - Part 2 (Total 10pts) How
Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): * Students will
be graded on their effort to fully complete their posting, reply, and problem. a. Based on your cvp
analysis: 1- Explain your results for the break-even point, margin of safety ratio, and cvp income
statement. (35 words - 1.25pts) 2- Provide two reasons (benefits or drawbacks) for making the
changes recommended by Hakim. (40 words - 1.25pts) b. Explain and compare the per unit and
the total cost behavior for fixed costs. 1- Provide and explain two examples for the per unit cost
behavior for fixed costs. ( 35 words 1.25pts ) 2- Provide and explain two examples for the total
cost behavior for fixed costs. (40 words 1.25pts ).
CostVolumeProfit Analysis Problem Hakim is the manager for.pdf
1. Cost-Volume-Profit Analysis Problem Hakim is the manager for Tahoe Bed and Breakfast. Hakim
is currently considering an upgrade to the breakfast service to attract more business that will add
$3 in variable costs to Tahoe's current variable costs of $15. Hakim is also proposing that a 10%
room rate increase (from $60 to $66 per room) will produce an increase in room rentals from 3,500
to 4,000 units. Fixed costs will remain at $126,000 for Tahoe. 1. Prepare the Break-even point and
Margin of Safety Ratio for Tahoe. Current After Changes Increase/Decrease Break-even point in
units Margin of Safety Ratio 2. Prepare the CVP Income Statement (Totals) for Tahoe. CVP
Income Statement: Sales revenes Less: Variable costs Contribution margin Less: Fixed costs
Profit/Loss begin{tabular}{|l|l|l|} hline multicolumn{1}{|c|}{ Aurrent } & & hline & & hline & & hline &
& hline & & hline & & hline end{tabular}Ch18 Case Study Assignment - Part 2 (Total 10pts) How
Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): * Students will
be graded on their effort to fully complete their posting, reply, and problem. a. Based on your cvp
analysis: 1- Explain your results for the break-even point, margin of safety ratio, and cvp income
statement. (35 words - 1.25pts) 2- Provide two reasons (benefits or drawbacks) for making the
changes recommended by Hakim. (40 words - 1.25pts) b. Explain and compare the per unit and
the total cost behavior for fixed costs. 1- Provide and explain two examples for the per unit cost
behavior for fixed costs. ( 35 words 1.25pts ) 2- Provide and explain two examples for the total
cost behavior for fixed costs. (40 words 1.25pts )
