1) Find out Cosmic's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by arranging a summary contribution margin income statement at breakeven level of sales. Illustrate only two categories of costs: variable and fixed.
2) Calculate Cosmic's margin of safety in dollars for March 2012
3) If Cosmic can increase monthly sales volume by 10% what will operating income be? (The sales mix remains uncharged.)
4) The manager of Fore and Aft Marina wishes to investigate possibility of enlarging docking facility so that two boats can stop for gas and servicing simultaneously. Suppose that mean arrival rate is 5 boats per hour and that mean service rate for each channel is 10 boats per hour.
a) Find out the probability that the boat dock will be idle?
b) Compute the average number of boats that will be waiting for service?
c) Determine the average time a boat will spend waiting for service?
d) Compute the average time a boat will spend at the dock?
e) If you were a manager of Fore and Aft Marina, would you be satisfied with service level your system will be providing? Explain why or why not?