ons Your company is considering the production and sale of a new product. The selling price...
Your company is considering the production and sale of a new product. The selling price of the new product is $70 per unit, the variable costs are $50 per unit, and the total monthly fixed costs are $300,000. How many units of the new product will your company need to sell in a month to break even on the new product? 4,286 units 6,000 units 10,000 units 15,000 units
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. C. Prepare a contribution margin income statement for the month of September when they will sell 900 units. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. d. How many units will Maple need to sell in...
Cheesy Company The Company is considering the introduction of a new product with the following price and cost characteristics Sales price $150 each Variable cost $60 each Fixed cost $135,000 per year The company expects to sell 2,000 units for the year. 16. Refer Cheesy Company. How many units must be sold to break even? a. 900 b. 2,250 c. 2,000 d. 1,500 17. What effect could an increase (investment) in fixed costs have on the break-even point and the contribution...
A company produces a single product. Variable production costs are $12 per unit and variable selling and administrative costs are $3 per unit. Fixed production costs are $36,000 and fixed selling and administrative costs total $40,000. The beginning inventory was zero, production of 4,000 units, and sales of 3,600 units. How many units remain in the ending inventory and what is the unit and total cost, assuming variable costing.
Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) $ $ $ 15,000 55 64,000 390,000 20% The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired...
Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) 18,500 50 $ 58,000 400,000 20% The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired ROI. ((Round...
Griggs Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to a proposed $190 per unit. Assume that the variable cost per unit of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price. Hint: Treat each situation (current and proposed price) as separate potential scenarios when evaluating...
Griggs Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to a proposed $190 per unit. Assume that the variable cost per unit of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price. Hint: Treat each situation (current and proposed price) as separate potential scenarios when evaluating...
Naumann Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 23e 46 $184 Percent of Sales 100% 2ex 80% Fixed expenses are $150,000 per month. The company is currently selling 1,000 units per month Required: Management is considering using a new component that would increase the unit variable cost by $80. Since the new component would improve the company's product, the marketing manager predicts that monthly sales...
Naumann Corporation produces and sells a single product. Data concerning that product appear below. Selling price Variable expenses Contribution margin Per Unit $ 230 46 $184 Percent of Sales 1003 208 808 Fixed expenses are $150,000 per month. The company is currently selling 1,000 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $80. Since the new component would improve the company's product, the marketing manager predicts that monthly sales...