1. explain the results for the breaking point, margin of safety ratio and cvp income statement
2. provide two reasons (benefits or drawbacks) for making the changes recommended by hakim
B. Explain and compare the per unit and the total cost behavior for fixed cost.
1. Provide and explain 2 examples for per unit cost behavior for fixed cost
2. provide and explain 2 examples for the total cost behavior for fixed costs.
Ch18 Case Study Assignment - Part 2 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. 2. Prepare the
CVP Income Statement (Totals) for Tahoe. Ch18 Case Study Assignment - Part 2 (Total 10pts)
How Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): Sheet 1
Accessibility: Good to go.
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1 explain the results for the breaking point margin of saf.pdf
1. 1. explain the results for the breaking point, margin of safety ratio and cvp income statement
2. provide two reasons (benefits or drawbacks) for making the changes recommended by hakim
B. Explain and compare the per unit and the total cost behavior for fixed cost.
1. Provide and explain 2 examples for per unit cost behavior for fixed cost
2. provide and explain 2 examples for the total cost behavior for fixed costs.
Ch18 Case Study Assignment - Part 2 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. 2. Prepare the
CVP Income Statement (Totals) for Tahoe. Ch18 Case Study Assignment - Part 2 (Total 10pts)
How Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): Sheet 1
Accessibility: Good to go
