Answers
A |
Sale price per unit |
$98 |
B |
Variable cost per unit |
$68 |
C = A- B |
Contribution margin per unit |
$30 |
D |
Current sales volume |
25,800 |
E = C x D |
Total Contribution margin |
$774,000 |
F |
Fixed Cost |
$836,100 |
G = E - F |
Present yearly Net Operating Income (loss) |
($62,100) |
A |
Fixed Cost |
$836,100 |
B |
Contribution margin per unit |
$30 |
C = A/B |
Present Break Even point in unit sales |
27,870 |
D = C x $ 70 |
Present Break Even point in dollar sales |
$2,731,260 |
Maximum Profits |
$179,900 |
No. of units |
50,800 |
Selling Price |
$88 |
--Working
Unit Sales |
Sale price |
Variable cost |
Contribution margin per unit |
Total Contribution margin |
Fixed Cost |
Net Operating Income (loss) |
[A] |
[B] |
[C] |
[D = B - C] |
[E = A x D] |
[F] |
[G = E - F] |
25,800 |
$98 |
$68 |
$30 |
$774,000 |
$836,100 |
($62,100) |
30,800 |
$96 |
$68 |
$28 |
$862,400 |
$836,100 |
$26,300 |
35,800 |
$94 |
$68 |
$26 |
$930,800 |
$836,100 |
$94,700 |
40,800 |
$92 |
$68 |
$24 |
$979,200 |
$836,100 |
$143,100 |
45,800 |
$90 |
$68 |
$22 |
$1,007,600 |
$836,100 |
$171,500 |
50,800 |
$88 |
$68 |
$20 |
$1,016,000 |
$836,100 |
$179,900 |
55,800 |
$86 |
$68 |
$18 |
$1,004,400 |
$836,100 |
$168,300 |
60,800 |
$84 |
$68 |
$16 |
$972,800 |
$836,100 |
$136,700 |
A |
Fixed Cost |
$836,100 |
B |
Contribution margin per unit |
$20 |
C = A/B |
Break Even point in unit sales |
41,805 Answer |
D = C x $ 88 |
Break Even point in dollar sales |
$3,678,840 Answer |
Problem 5-19 Break-Even Analysis; Pricing [LO5-1, LO5-4, LO5-5] Minden Company introduced a new product last year...
Problem 2-19 (Algo) Break-Even Analysis; Pricing [LO2-1, LO2-4, LO2-5) 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. Pixed expenses are $831,000 per year. The present annual sales volume (at the $100 selling price...
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 $98 per unit, and variable expenses are $68 per unit. Fixed expenses are $834,600 per year. The present annual sales volume (at the $98 selling price) is 26,000 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 $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 $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 $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 $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 $834,000 per year. The present annual sales volume (at the $92 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 $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $838,800 per year. The present annual sales volume (at the $97 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 $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $837,900 per year. The present annual sales volume (at the $97 selling price) is 25,800 units. Required: 1. What is the present...