Needing help on the full detailed steps to figure each question out. Practice Questions: 1. James...
Practice questions I need to learn the full steps on working out the problems. Please help! 2. A company sells 200,000 products at a sales price of $2.70, and variable cost of $1.50 per product. Their fixed costs typically run $80,000. If they run a new ad campaign costing $11,000 during the Super Bowl, they expect to increase sales by 20%. What is the expected change in profits as a result of this potential ad campaign? 3. A company sells...
Solve question 6 to 10 Assume that Bay King Products sells three varieties of canned seafood with the following prices costs: Selling Price per Case $125 $150 $100 Variable Cost per Case $95 100 Fixed Cost per Month Premium Royal Deluxe Entire firm 80 $246,500 The sales mix (in cases) is 30% Premium, 20% Royal, and 50% Deluxe. Required What is the weighted average contribution margin? 2. What is the break even point in total monthly sales units? 3.What is...
Answer these following questions: 1. Bridal Shoppe sells wedding dresses. The cost of each dress is comprised of the following: Selling price of $500 and variable (flexible) costs of $200. Total fixed (capacity-related costs for Bridal Shoppe are $90,000. What is the contribution margin per dress a. $500 b. $300 c $600 d. none of these 2. Bridal Shoppe sells wedding dresses. The cost of each dress is comprised of the following: Selling price of $500 and variable (flexible) costs...
Bates Company currently produces and sells 5,000 units of a product that has a contribution margin of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold...
Assume that Bay King Products sells three varieties of canned seafood with the following prices costs: Selling Price per Case $125 $150 $100 Variable Cost per Case $95 100 Fixed Cost per Month Premium Royal Deluxe Entire firm 80 $246,500 The sales mix (in cases) is 30% Premium, 20% Royal, and 50% Deluxe. Required What is the weighted average contribution margin? 2. What is the break even point in total monthly sales units? 3.What is the breakeven point in sales...
Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $112 per unit. The company's annual fixed costs are $400,400. Management targets an annual pretax income of $700,000. Assume that fixed costs remain at $400,400. (1) Compute the unit sales to earn the target income. (2) Compute the dollar sales to earn the target income.Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per...
Blanchard Company manufactures a single product that sells for $366 per unit and whose total variable costs are $275 per unit. The company's annual fixed costs are $640,000. The sales manager predicts that annual sales of the company's product will soon reach 41,000 units and its price will increase to $405 per unit. According to the production manager, variable costs are expected to increase to $289 per unit but fixed costs will remain at $640,000. The income tax rate is...
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company’s annual fixed costs are $624,000. The sales manager predicts that annual sales of the company’s product will soon reach 39,400 units and its price will increase to $194 per unit. According to the production manager, variable costs are expected to increase to $134 per unit, but fixed costs will remain at $624,000. The income tax rate is...
can you answere question 2? 1. Goff Corporation sells products for $75 each that have variable costs of $50 per unit. Goff's fixed cost is $350,000. Calculate the contribution margin per unit, then use the per unit contribution margin approach to find the break-even point in units and dollars. 2. Phillips Company can sell 15,000 units of its new product at a selling price of $116. The unit cost is $72. The company's target profit is 40% of sales. The...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 2,400,000 40% Contribution margin $600 3,600,000 60% Fixed costs 2,400,000 Profit $1,200,000 Break-even units = $2,400,000 ÷ 600 = 4,000 Break-even sales = 4,000 × $1,000...