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Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $10. At current...
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current...
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? O NO, because a lower price always reduces profit O YES, because revenue will increase by $12,750 O YES, because profit will increase...
Total fixed costs are $10,000. Unit variable cost is $30. At current selling price of $75,...
Total fixed costs are $10,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? -NO, because a lower price always reduces profit -YES, because revenue will increase by $12,750 -YES, because profit will increase by $3,750
================== MANAGERIAL ACCOUNTING PROBLEMS Please answer ALL IN DETAILS to get UPVOTE Thanks QuestionPricing decisions Total...
==================
MANAGERIAL ACCOUNTING PROBLEMS
Please answer ALL IN DETAILS to get
UPVOTE
Thanks
QuestionPricing decisions Total fixed costs are $25,000. Unit variable cost is $20. At current selling price of $50, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? NO, because a lower price always reduces profit O YES, because revenue...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin $5,400 Fixed costs $1,600 Profit $18 Special order: A client wants to buy 10 units at a discounted price of $30 per unit. This is a one-time deal (l.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
stuggling. please hekp Question 10 2.5 pts Fixed costs are unknown. Variable costs are $20 per...
stuggling. please hekp
Question 10 2.5 pts Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the profit change in the short term if you reduce the price to $46? decrease by $3,240 O increase by $360 O increase by $1,800 O no change decrease by $840
Question 1: Special order Sales volume in units 80 Revenue $8,000 Variable costs $1,600 Contribution margin...
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
Question 2: Should you reduce the price or increase advertising? The selling price is $20/unit, variable...
Question 2: Should you reduce the price or increase advertising? The selling price is $20/unit, variable costs are $10/unit, and fixed costs are $3,000 in total. Sales volume decreased to 200 units because of a recession. You are considering two options to stimulate sales: (1) Reduce the price to $18/unit. This will increase sales volume by 20%. (2) Buy additional advertising for $300 and keep the original price. This will increase sales volume by 20%. Use the gross approach to...
QUESTION 1 At current production volume of 10 units, Gamma Company has total variable costs of...
QUESTION 1 At current production volume of 10 units, Gamma Company has total variable costs of $300 and total fixed costs of $280. If production is expected to drop to 8 units in the next period, what is the total cost projected for the next period? A 5520 B. $240 C.5580 D. $464 QUESTION 2 Alpha Company has a selling price of $30, unit variable cost of $10, and sales volume of 300 units. Fixed costs total $1,000. Alpha believes...
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? O NO, because a lower price always reduces profit O YES, because revenue will increase by $12,750 O YES, because profit will increase...
==================
MANAGERIAL ACCOUNTING PROBLEMS
Please answer ALL IN DETAILS to get
UPVOTE
Thanks
QuestionPricing decisions Total fixed costs are $25,000. Unit variable cost is $20. At current selling price of $50, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? NO, because a lower price always reduces profit O YES, because revenue...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin $5,400 Fixed costs $1,600 Profit $18 Special order: A client wants to buy 10 units at a discounted price of $30 per unit. This is a one-time deal (l.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
stuggling. please hekp
Question 10 2.5 pts Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the profit change in the short term if you reduce the price to $46? decrease by $3,240 O increase by $360 O increase by $1,800 O no change decrease by $840
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
QUESTION 1 At current production volume of 10 units, Gamma Company has total variable costs of $300 and total fixed costs of $280. If production is expected to drop to 8 units in the next period, what is the total cost projected for the next period? A 5520 B. $240 C.5580 D. $464 QUESTION 2 Alpha Company has a selling price of $30, unit variable cost of $10, and sales volume of 300 units. Fixed costs total $1,000. Alpha believes...
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