Part 1
Volume in units |
70171 |
Sales |
$3087524 |
Current profit = 67,000 units × ($40 – $21) – $770,000 = $503,000
New variable cost per unit:
Labor+Materials+Overhead = (120% × 60% × $21) + (115% × 20% × $21) + (125% × 20% × $21) = $25.20
New price=110% × $40 = $44.00
New fixed costs=106% × $770000 = $816200
Sales:Profit target=$503000
Profit=(P – V)X – F
$503,000=($44.00 – $25.20)X – $816200
X=$1319200 ÷ ($44.00 – $25.20)=70,171 units (rounded up)
Sales in dollars = 70,171 × $44.00=$3087524
Part 2
Volume in units |
72044 |
Sales |
$3169936 |
Profit target = $503,000 × 107%= $538210
Profit=(P – V)X – F
$538210=($44.00 – $25.20)X – $816200
X=$1354410 ÷ ($44.00 – $25.20)=72044 units (rounded up)
Sales in dollars = 72044 × $44.00=$3169936
Part 3
New price |
$45.42 |
Profit=PX – VX – F
$538210 =P(67,000) – ($25.20 × 67,000) – $816200
P=$3042810 ÷ 71,000
P=$45.42 (rounded)
Argentina Partners is concerned about the possible effects of inflation on its operations. Saved Help Save...
argentina partners is concerned about the possible effects of inflation on its operations. Saved Help Save FINICIJU Piyu UV nuvy BIS IURCE Inryca Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 67.000 units for $40 per unit. The variable production costs are $21, and fixed costs amount to $770,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise...
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 61,000 units $35 per unit. The variable production costs are $20, and fixed costs amount to $710,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year the $20 variable costs, 40 percent are from labor and 20 percent are from materials. Variable overhead...
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 63,000 units for $45 per unit. The variable production costs are $30, and fixed costs amount to $730,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 10 percent in the coming year. Of the $30 variable costs, 50 percent are from labor and 30 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 71,000 units for $60 per unit. The variable production costs are $35, and fixed costs amount to $810,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 5 percent in the coming year. Of the $35 variable costs, 45 percent are from labor and 25 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 79,000 units for $30 per unit. The variable production costs are $15, and fixed costs amount to $890,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 15 percent in the coming year. Of the $15 variable costs, 40 percent are from labor and 20 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 77,000 units for $55 per unit. The variable production costs are $36, and fixed costs amount to $870,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 15 percent in the coming year. Of the $36 variable costs, 50 percent are from labor and 25 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 77,000 units for $55 per unit. The variable production costs are $36, and fixed costs amount to $870,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 15 percent in the coming year. Of the $36 variable costs, 50 percent are from labor and 25 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 65,000 units for $30 per unit. The variable production costs are $16, and fixed costs amount to $750,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 10 percent in the coming year. Of the $16 variable costs, 45 percent are from labor and 20 percent are from materials....
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 75,000 units for $45 per unit. The variable production costs are $25, and fixed costs amount to $850,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the $25 variable costs, 40 percent are from labor and 30 percent are from materials....
Check my work 7 1.11 Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 74,000 units for $40 per unit. The variable production costs are $17, and fixed costs amount to $840,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the $17 variable costs, 50 percent are from labor and...