15,000 | |||||||||||
total | per unit | ||||||||||
1) | Sales | 1050000 | 70 | ||||||||
less :Variable cost | 600000 | 40 | |||||||||
contribution marging | 450000 | 30 | |||||||||
less:fixed expense | 540,000 | ||||||||||
Net operating income(loss) | -90,000 | ||||||||||
net operating loss | -90,000 | ||||||||||
2) | Break even point in units | 18000 | |||||||||
Break even point in dollars | 1260000 | ||||||||||
BEP(units) = fixed cost/contribution margin per unit | |||||||||||
BEP(dollars) = BEP units * selling price per unit | |||||||||||
3) | units | 15,000 | 20,000 | 25,000 | 30,000 | 35,000 | 40,000 | 45,000 | 50,000 | ||
selling price per unit | 70 | 68 | 66 | 64 | 62 | 60 | 58 | 56 | |||
less:Variable expense | -40 | -40 | -40 | -40 | -40 | -40 | -40 | -40 | |||
contribution per unit | 30 | 28 | 26 | 24 | 22 | 20 | 18 | 16 | |||
total contribution margin | 450000 | 560000 | 650000 | 720000 | 770000 | 800000 | 810000 | 800000 | |||
less:fixed expense | -540,000 | -540,000 | -540,000 | -540,000 | -540,000 | -540,000 | -540,000 | -540,000 | |||
net operating income(loss | -90000 | 20000 | 110000 | 180000 | 230000 | 260000 | 270000 | 260000 | |||
Maimum profit | 270000 | ||||||||||
number of units | 45,000 | ||||||||||
selling price | 58 | ||||||||||
4) | Break even point in units | 27000 | |||||||||
Break even point in dollars | 1566000 | ||||||||||
BEP(units) = fixed cost/contribution margin per unit | |||||||||||
BEP(dollars) = BEP units * selling price per unit |
Check my work Minden Company introduced a new product last year for which it is trying...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $90 per unit, and variable expenses are $60 per unit. Fixed expenses are $835,800 per year. The present annual sales volume (at the $90 selling price) is 25,700 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $833,700 per year. The present annual sales volume (at the $94 selling price) is 25,300 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $838,800 per year. The present annual sales volume (at the $97 selling price) is 25,900 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $99 per unit, and variable expenses are $69 per unit. Fixed expenses are $838,200 per year. The present annual sales volume (at the $99 selling price) is 25,100 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $837,900 per year. The present annual sales volume (at the $97 selling price) is 25,800 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $832,200 per year. The present annual sales volume (at the $94 selling price) is 25,900 units. 8.33 points eBook Required: 1. What...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $837,000 per year. The present annual sales volume (at the $96 selling price) is 25,100 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $100 per unit, and variable expenses are $70 per unit. Fixed expenses are $831,600 per year. The present annual sales volume (at the $100 selling price) is 25,600 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $92 per unit, and variable expenses are $62 per unit. Fixed expenses are $834,000 per year. The present annual sales volume (at the $92 selling price) is 25,600 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $837,000 per year. The present annual sales volume (at the $94 selling price) is 25,800 units. Required: 1. What is the present...