Answer 1:
Net operating loss | $ 66,000.00 |
Explanation:
Income statement | |
Present | |
Sales | $ 2,355,200.00 |
Less: variable Cost | $ 1,587,200.00 |
Contribution | $ 768,000.00 |
Less: Fixed Cost | $ 834,000.00 |
Net Income | $ (66,000.00) |
Answer 2:
Break-even point in units | $ 27,800.00 |
Break-even point in dollar sales | $ 2,557,600.00 |
Explanation:
Fixed cost (A) | $ 834,000.00 |
Contribution per unit (B) | $ 30.00 |
Break even point in units (A/B) | 27,800.00 |
Selling price | $ 92.00 |
Break-even point in dollar sales | $ 2,557,600.00 |
Answer 3:
Maximum profit | $ 178,000.00 |
Number of units | 50,600.00 |
Selling price | $ 82.00 |
Income statement | |
Proposed | |
Sales | $ 4,149,200.00 |
Less: variable Cost | $ 3,137,200.00 |
Contribution | $ 1,012,000.00 |
Less: Fixed Cost | $ 834,000.00 |
Net Income | $ 178,000.00 |
Explanation:
Answer 4:
Break-even point in units | 41,700.00 |
Break-even point in dollar sales | $ 3,419,400.00 |
Fixed cost (A) | $ 834,000.00 |
Contribution per unit (B) | $ 20.00 |
Break-even point in units (A/B) | 41,700.00 |
Selling price | $ 82.00 |
Break-even point in dollar sales | $ 3,419,400.00 |
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Minden Company introduced a new product last year for which it is trying to find an...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $100 per unit, and variable expenses are $70 per unit. Fixed expenses are $831,600 per year. The present annual sales volume (at the $100 selling price) is 25,600 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $92 per unit, and variable expenses are $62 per unit. Fixed expenses are $839,400 per year. The present annual sales volume (at the $92 selling price) is 25,500 units. Required: 1. What is the present...
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Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $833,700 per year. The present annual sales volume (at the $94 selling price) is 25,300 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $90 per unit, and variable expenses are $60 per unit. Fixed expenses are $835,800 per year. The present annual sales volume (at the $90 selling price) is 25,700 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $837,000 per year. The present annual sales volume (at the $96 selling price) is 25,100 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $99 per unit, and variable expenses are $69 per unit. Fixed expenses are $838,200 per year. The present annual sales volume (at the $99 selling price) is 25,100 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $95 per unit, and variable expenses are $65 per unit. Fixed expenses are $837,600 per year. The present annual sales volume (at the $95 selling price) is 25,900 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $93 per unit, and variable expenses are $63 per unit. Fixed expenses are $840,000 per year. The present annual sales volume (at the $93 selling price) is 25,400 units. Required: 1. What is the present...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $832,800 per year. The present annual sales volume (at the $97 selling price) is 25,100 units. Required: 1. What is the present...