Homework Answers
Solution:
b) Expected profit if jordan project the following details for delatine
variable cost per unit is = $ 26
fixed cost = 40400
selling price = 47
sales volume 4400 bottles
Expected profit = sales volume *( selling price - variable cost) - fixed cost
= 4400* ( 47-26) - 40400 = 4400*21 - 40400
= 92400 - 40400 = 52000
Expected profit = 52000
c) New circumstance Jordan expected profit would
New variable cost per unit = 24
New fixed cost = 50400
Selling price = 47
Sales volume = 4400 bottles
Profit = 4400* ( 47 - 24 ) - 50400
=4400*23 - 50400
= 101200 - 50400 = 50800
Old profit = 52000 , New profit = 50800
So the expected profit would
52000 - 50800 = 1200
Decreased by 1200.
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Use the below table to answer the following questions. Selling Price = $47.00 2,400 6,400 Fixed...
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Q.6
Use the below table to answer the following questions.
Selling Price = $27.00
Sales Volume
Fixed Cost
Variable Cost
2,100
3,100
4,100
5,100
6,100
Profitability
$
25,700
8
$
14,200
$
33,200
$
52,200
$
71,200
$
90,200
25,700
9
12,100
30,100
48,100
66,100
84,100
25,700
10
10,000
27,000
44,000
61,000
78,000
35,700
8
4,200
23,200
42,200
61,200
80,200
35,700
9
2,100
20,100
38,100
56,100
74,100
35,700
10
–
17,000
34,000
51,000
68,000
45,700
8
(5,800
)
13,200
32,200...
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Q.6
Use the below table to answer the following questions.
Selling Price = $27.00
Sales Volume
Fixed Cost
Variable Cost
2,100
3,100
4,100
5,100
6,100
Profitability
$
25,700
8
$
14,200
$
33,200
$
52,200
$
71,200
$
90,200
25,700
9
12,100
30,100
48,100
66,100
84,100
25,700
10
10,000
27,000
44,000
61,000
78,000
35,700
8
4,200
23,200
42,200
61,200
80,200
35,700
9
2,100
20,100
38,100
56,100
74,100
35,700
10
–
17,000
34,000
51,000
68,000
45,700
8
(5,800
)
13,200
32,200...
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