first let us know current month profit:
sales (350 bears *$35.00) | $12,250 |
less:variable costs ($24*350) | (8,400) |
contribution | 3,850 |
less:fixed costs | (1,500) |
net profit | 2,350 |
now, when sales increase by 20%.
number of units =>350+20%=>420 units.
sales (420*$35) | 14,700 |
less:variable costs (420*$24) | (10,080) |
contribution | 4,620 |
less:fixed costs | (1,500) |
net profit | 3,120 |
increase in profit = 3120-2350=>770
percentage = 770/ 2350
=>32.8%.
increase in profit | 32.8% |
value 10.00 points Heather Hudson makes stuffed teddy bears. Recent information for her business follows Selling...
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 27.00 Total fixed cost per month 1,480.00 Variable cost per bear 8.00 She sells 440 bears this month. Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit. (Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place. (i.e. .123 should be entered as 12.3%))
Chapter 6 Assignment i Saved Heather Hudson makes stuffed teddy bears. Recent information for her business follows: 10 Selling price per bear Total fixed cost per month Variable cost per bear $ 31.00 2,466.00 13.00 points Skipped If she sells 277 bears next month, determine the margin of safety in units, sales dollars, and as a percentage of sales. (Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2 decimal places. (i.e....
Lab Math Pear... Login to WebSTAR Dashboard o Mail-cm3069@m... Youlube o Other Bookmark Chapter 6 Assignment i Saved Help Save & Exit Submit Check my work Heather Hudson makes stuffed teddy bears. Recent information for her business follows: $ points Selling price per bear Total fixed cost per month Variable cost per bear 35.50 1,480.00 16.50 Skipped She sells 450 bears this month. eBook Suppose sales increase by 30 percent next month. Calculate the effect that increase will have on...
Suppose Caroline runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Caroline's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Caroline produces. Total Revenue Total Cost Profit TOTAL COST AND REVENUE (Dollars) 0 1...
1. value: 10.00 points Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,139 kilograms of plastic. The plastic cost the company 516,256. According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. According to the standards, what cost...