Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost per...
Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost per unit = $70 ① Calculate the probability that the firm makes a loss. Recall, unit sales are normally distributed so Z = (BEP - E[Q])/S[Q] ② Suppose the government imposes a $5 per unit tax which will raise the variable cost per unit by $5. Recalculate the probability of making a loss. ③ Compare to the pre-tax probability of loss. ④ Does your result make sense? ⑤ Does this help you understand why many industries lobby for lower business taxes?
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Given Fixed cost = $1,000,000 , Selling price per unit = $120 ,
Variable cost per...
Q Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost...
Q Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost per unit = $70 ① Calculate the probability that the firm makes a loss. Recall, unit sales are normally distributed so Z = (BEP - E[Q])/S[Q] ② Suppose the government imposes a $5 per unit tax which will raise the variable cost per unit by $5. Recalculate the probability of making a loss. ③ Compare to the pre-tax probability of loss. ④ Does your...
Q1 Given the following data for X (number of units sold), a normally distributed random variable....
Q1 Given the following data for X (number of units sold), a normally distributed random variable. 1. Calculate E[X] or the mean of unit sales and S[X] or the sample standard deviation of unit sales using Excel. Calculate E[X] using "=AVERAGE( )" in Excel. 2. Calculate S[X] using "=STDEV.S( )" in Excel. Round-off each to the nearest unit. Think of this sample of data being collected from one market in the last five years, or think of it as being...
SALES PRICt/UNIT VAR COST/UNIT FIXED COST 100 1,000,000 How MANY UNITS HAVE TO BE SOLD IN ORDER FOR NIBT TO 50% OF GROSS PROFI PRODUCTS PER UNIT SALES PRICE PER UNIT VARIABLE COST PER UNIT GP PER...
SALES PRICt/UNIT VAR COST/UNIT FIXED COST 100 1,000,000 How MANY UNITS HAVE TO BE SOLD IN ORDER FOR NIBT TO 50% OF GROSS PROFI PRODUCTS PER UNIT SALES PRICE PER UNIT VARIABLE COST PER UNIT GP PER UNIT FIXED COST PER UNIT NIBT 10 8 2 10 10 -2 WHICH PRODUCT OR PRODUCTS (IF ANY) NEEDS/ NEED TO BE REMOVED TO MAXIMIZE PROFIT (FIXED COST IS NOT ELIMINATED IF AN ITEM IS ELIMINATED)
SALES PRICt/UNIT VAR COST/UNIT FIXED COST 100...
Total fixed costs = $1,000,000 Unit Price = $5,515 Unit Variable Cost = $2,170 Find the...
Total fixed costs = $1,000,000 Unit Price = $5,515 Unit Variable Cost = $2,170 Find the breakeven volume. What happens to the breakeven volume if the unit price falls to $5,000 and unit variable cost rises to $2,500? Discuss your findings.
If selling price is $150 per unit, variable cost is $81 per unit, and fixed cost...
If selling price is $150 per unit, variable cost is $81 per unit, and fixed cost is $240, calculate the contribution margin ratio. O 160X O 29% 0 46% O 38% Save for later Attempts: 0 of 1 used Sumit Answer
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed...
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed cost $ 200 $ 80 $ 12000 You are required to find how many units must be sold by the company to achieve break-even using the income statement approach. АЗ.
The selling price of a unit is $21.2 and the variable product cost per unit is...
The selling price of a unit is $21.2 and the variable product cost per unit is $15.1. In addition, a sales commission of 5% is paid on each sale. If the variable product cost per unit increases by 1%, what will be the new contribution margin per unit? $4.90 $5.20 $4.89 $6.10
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $640 $320 $320 Z 340 220 120 The sales mix for products Q and Z is 40% and 60%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...
Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and...
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
SALES PRICt/UNIT VAR COST/UNIT FIXED COST 100 1,000,000 How MANY UNITS HAVE TO BE SOLD IN ORDER FOR NIBT TO 50% OF GROSS PROFI PRODUCTS PER UNIT SALES PRICE PER UNIT VARIABLE COST PER UNIT GP PER UNIT FIXED COST PER UNIT NIBT 10 8 2 10 10 -2 WHICH PRODUCT OR PRODUCTS (IF ANY) NEEDS/ NEED TO BE REMOVED TO MAXIMIZE PROFIT (FIXED COST IS NOT ELIMINATED IF AN ITEM IS ELIMINATED)
SALES PRICt/UNIT VAR COST/UNIT FIXED COST 100...
If selling price is $150 per unit, variable cost is $81 per unit, and fixed cost is $240, calculate the contribution margin ratio. O 160X O 29% 0 46% O 38% Save for later Attempts: 0 of 1 used Sumit Answer
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed cost $ 200 $ 80 $ 12000 You are required to find how many units must be sold by the company to achieve break-even using the income statement approach. АЗ.
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
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