2. MyAppliance+ is adding a new wine cooler to its appliance product mix. To implement the...
2. MyAppliance+ is adding a new wine cooler to its appliance product mix. To implement the new cooler it will have a fixed cost of $300,000 but the selling price is $150.00 with a variable cost of $89.99. MyAppliance+ wants to make at least $60,000 of profit the first year with this new product. How many wine coolers does the company have to sell to reach this profit goal? ___________________
Homework Answers
Selling price = $150
Less: Variable cost = $89.99
Contribution margin = $60.01
Contribution margin ratio = Contribution margin / selling price = $60.01 / $150 = 0.4000667
Contribution margin ratio = 40.00667%
Desired profit =$60,000
Target sales = (fixed cost + Desired profit) / Contribution margin per unit
Target sales = ($300,000 + $60,000) / $60.01
Target sales = $5999 units
Add Answer to:
2. MyAppliance+ is adding a new wine cooler to its appliance
product mix. To implement the...
Problem 1 Sugar Land Company is considering adding a new line to its product mix and...
Problem 1 Sugar Land Company is considering adding a new line to its product mix and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in urused space (Market Value Zero) in Sugar and main plant. Total cost of the machine is $300,000. The machinery has an economic if of 4 years and will be deprecated using MACRS for 3 year property dess. The machine will have a salvage value of...
Shrieves Casting Company is considering adding a new line to its product mix, and the capital...
Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The cost of new machinery for the new product line would be $644,000. The machinery has economic life of eight years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the machine. The new line would generate incremental sales of 70,000 units per year at...
. The Pointer Appliance Company is investigating the addition of a new and improved pulsating blender...
. The Pointer Appliance Company is investigating the addition of a new and improved pulsating blender to its line of consumer appliances. The product chops, grinds, grates and blends smoothies twice as fast as all other blenders on the market. It has a 10-year warranty on the motor and offers a replacement 5-cup glass blender for $10.99. The blender is going to require additional expenditures for the production line on the part of the Pointer Appliance Company. Management wants to...
Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the...
Appliance Possible Inc. (AP) is a manufacturer of toaster ovens.
To improve control over operations, the president of AP wants to
begin using a flexible budgeting system, rather than use only the
current master budget. The following data are available for AP’s
expected costs at production levels of 89,000, 103,000, and 117,000
units.
Variable costs
Manufacturing
$7 per unit
Administrative
$4 per unit
Selling
$2 per unit
Fixed costs
Manufacturing
$151,000
Administrative
$77,000
Prepare a flexible budget for each of...
The Pointer Appliance Company is investigating the additional of a new and improved pulsating blender to...
The Pointer Appliance Company is investigating the additional of a new and improved pulsating blender to its line of consumer appliances. The product chops, grinds, grates and blends smoothies twice as fast as all other blenders on the market. It has a 10 year warranty on the motor and offers a replacement 5 cup glass blender cup for $10.99. The blender is going to require additional expenditures for the production line on the part of the Pointer Company. Management wants...
Exercise 10-7 (Video) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control...
Exercise 10-7 (Video) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 82,000, 92,000, and 102,000 units. Variable costs Manufacturing Administrative $6 per unit $3 per unit $2 per unit Selling Fixed costs Manufacturing Administrative $144,000 $76,000 Prepare a flexible budget...
Fall For Pun Company sells three products. Last year's cost and revenue data for these products...
Fall For Pun Company sells three products. Last year's cost and revenue data for these products were the following: Product Parachutes Hang gliders Bungee jumping harnesses Sales Revenue $750,000 $800,000 $300,000 Variable Costs $450,000 $600,000 $150,000 Average Unit Price $250.00 $1,600.00 $150.00 Fixed costs were $ 490,000, while fixed revenues were $35.000. For next year the management team is forecasting an increase in fixed cost of approximately 15%. You are required to determine: 1. the break-even point in sales dollars...
CASE-PART A Shrieves Casting Company is considering adding a new product line to its product mix,...
CASE-PART A Shrieves Casting Company is considering adding a new product line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recent business school graduate. The production line would be set up in unused space in Shrieves’s main plant. The machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required to acquire the machinery from the supplier, and it would cost an additional $30,000 to install the equipment....
Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to...
Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Sales Price Variable Cost Bookshelf per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think...
Louis Viggio was struggling to determine how to price his new offering of cabernet sauvignon wine...
Louis Viggio was struggling to determine how to price his new offering of cabernet sauvignon wine (commonly called simply cab) from his winery. He knew that even though he was setting a price for the wine that came from grapes harvested in 2013, it was going to be a reference price for distributors, retailers, and consumers for all the cab he would be producing in the future. Louis also knew he could use some cash flow since he had been...
Problem 1 Sugar Land Company is considering adding a new line to its product mix and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in urused space (Market Value Zero) in Sugar and main plant. Total cost of the machine is $300,000. The machinery has an economic if of 4 years and will be deprecated using MACRS for 3 year property dess. The machine will have a salvage value of...
Appliance Possible Inc. (AP) is a manufacturer of toaster ovens.
To improve control over operations, the president of AP wants to
begin using a flexible budgeting system, rather than use only the
current master budget. The following data are available for AP’s
expected costs at production levels of 89,000, 103,000, and 117,000
units.
Variable costs
Manufacturing
$7 per unit
Administrative
$4 per unit
Selling
$2 per unit
Fixed costs
Manufacturing
$151,000
Administrative
$77,000
Prepare a flexible budget for each of...
Exercise 10-7 (Video) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 82,000, 92,000, and 102,000 units. Variable costs Manufacturing Administrative $6 per unit $3 per unit $2 per unit Selling Fixed costs Manufacturing Administrative $144,000 $76,000 Prepare a flexible budget...
Fall For Pun Company sells three products. Last year's cost and revenue data for these products were the following: Product Parachutes Hang gliders Bungee jumping harnesses Sales Revenue $750,000 $800,000 $300,000 Variable Costs $450,000 $600,000 $150,000 Average Unit Price $250.00 $1,600.00 $150.00 Fixed costs were $ 490,000, while fixed revenues were $35.000. For next year the management team is forecasting an increase in fixed cost of approximately 15%. You are required to determine: 1. the break-even point in sales dollars...
Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Sales Price Variable Cost Bookshelf per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think...
Most questions answered within 3 hours.
-
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 32 minutes ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 38 minutes ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 1 hour ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 1 hour ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 2 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 2 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 2 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 2 hours ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 2 hours ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 2 hours ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 2 hours ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 2 hours ago