Company Y thinks they can increase sales by lowering the price of their product. If they currently sell 2,000 units a month at $110, how many more units will they have to sell at $100 to get the same amount of revenue? Answer units
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- ab. ock esc ~ Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Total unavoidable allocated overhead How much would Operating Income decrease if Microhard were to eliminate the tablets? DO NOT INCLUDE PARENTHESES OR NEGATIVE SIGNS IN YOUR ANSWER. Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 Q A @ 2 W S $60 $30 $10 $48,000 #M 3 E $ 4 D R % от оро 5 F MacBook Pro < 6 T G & of r 7 Y H * 00 つBreak-even Analysis Example Imagine that you want to launch a new business selling a smartphone app. You make the following assumptions about your costs and revenue. The expected average selling price = $7. Estimated fixed costs = $75,000 (this is enough to cover your salary and pay for a small office). These costs will not change with the number of apps sold. Variable costs = $0.50 (these are the transaction fees you need to pay on each sale). (1) Armed with this information, calculate the break-even point in units: (2) To earn a profit of 5%, how many units do you need to sell? (3) What if you were able to reduce the estimated fixed cost to $65,000, what would your new break-even be in units? (4) What if you missed the mark on variable costs and the actual variable costs are $1.15, what would your break-even be in units?EasyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $22 per dozen. Their current volume is 5,730 dozen per month. They are considering reducing their sales price by 24% per dozen. What % increase in unit sales is necessary to achieve the same level of total contribution? 31.58% is INCORRECT. PS1 2 3 4 56 7 TRY QUESTION AGAIN EXIT PRACTICE PRACTIO CALCULATED VARIABLES: newvol - 10,232 newunits a 7,539 newucont - $6.72 newprice = $16.72 tcont = $68,760 revenues $126,060 Xavi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $9 per painting. If Xavi sells his paintings for $15, and sells 50 paintings per year more than his breakeven volume, what is his average cost per painting? 0.00 Average Cost ($) PS3 12 3 4 56 7 SUBMIT ANSWER EXIT CALCULATED VARIABLES: bevol = 167 marpct = 0.40 (40%) contrib = $6.00
- wwwwww Benicio has already calculated that the gross profit for the new product could be nearly $295,000 based on a unit price of $159.99 and unit sales of 22,000. He wants to see how the gross profit changes if the price or unit sales are different. Create a two-variable data table as follows to calculate gross profit as the price and unit sales change: wwwwww For the range D4:K9, create a two-variable data table using the price per unit (cell B6) as the Row input cell. Use the units sold (cell B5) as the Column input cell. www Go to the Suppliers worksheet, where Benicio wants to determine whether subcontracting could reduce the cost of the new virtual assistant product. Run Solver to solve this problem as follows: Set the objective as minimizing (Min) the total cost (cell E10).Results QUESTION 2 Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Cost Price per Cups Sold Revenue COGS Gross Margin per Cup Cup $ $ Small $2.50 $0.20 2,400 $ $ 24 Medium $3.50 $0.35 1,400 2$ Large $4.50 $0.50 700 $ 2$ Total Increased Price for Small Coffee Est. Change in Cups Sold with Small @ $2.75 Price Cost Gross per per Cups Sold Revenue COGS Margin Cup Cup $ $ Small $2.75 $0.20 -10% $ $ $ Medium $3.50 $0.35 +6% $ $ $ Large $4.50 $0.50 +3% $ $ $ Total Change in Gross Margin (positive number for increase, negative for decrease):…le Chrome tempt.php?attempt%3D1893307&cmid%3891193&page=10 SYSTEM (ACADEMIC) Time left Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $7, and fixed expenses are $1,500.How much is the profit? O a. $13,500 O b. $8,500 О с. $411,000 d. $6,000 O e. $16,000 AGE NEXT PA - a 40) ENG rch ort sc delete home 40 num % + backspace lock R enter esned
- > break even point - Search Bb Microsoft Word - Activities and n-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5dfaf8e708673/3382702?X-Blackboard-Expiration=165 Exercise 4: Breakeven and Target Profit: Abner Corporation makes a product that sells for $200 per unit. The variable costs to make this product are $120 per unit. Fixed costs total $500,000 for a year. Abner currently sells 7,500 units each year. 1. Calculate the number of units that Abner must sell to break even. 2. Calculate the number of units that Abner must sell to make $200,000 in profit. 3. Abner can purchase equipment that will automate its production facility. This equipment will raise Abner's fixed costs to $600,000 per year. Automation will cause the product's variable costs to drop to $100 per unit. How many units will Abner need to sell to make a $200,000 profit if the factory is automated? F4 F5 F7 F8 F9 F10 F11 F12 F6 %23 & * 6. 7 ECalculating a Target Cost RU Listening manufactures cell phones and is developing a new model with a feature (targeted at parents of teens) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 a.m. The new phone model has a target price of $370. Management requires a 10% profit on new product revenues. Required: If required, round to the nearest dollar. 1. Calculate the amount of desired profit.$fill in the blank 1 2. Calculate the target cost.$fill in the blank 2You are considering opening a copy service in thestudent union. You estimate your fixed cost at $15,000 and thevariable cost of each copy sold at $.01. You expect the sellingprice to average $.05.a) What is the break-even point in dollars?b) What is the break-even point in units? PX• • S7.23 An electronics firm is currently manufacturing anitem that has a variable cost of $.50 per unit and a selling priceof $1.00 per unit. Fixed costs are $14,000.
- ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+REQUIRED Study the information given below and answer the following questions independently. As far as possible, use the expanded contribution margin model to present your answers. Calculate the break-even Calculate the sales volume required to achieve an operating profit of R2 484 Suppose the management team of Timera Enterprises is considering a decrease of R18 per unit in the selling price of the product, with the expectation that this would increase the sales volume by 12%. Is this a good idea? Motivate your answer with the relevant calculations. *Determine the selling price per unit (expressed to the nearest cent) that will enable Timera Enterprises to break even. INFORMATION Timera Enterprises produces a single product. The following budgeted information for 2022 is available: Expected production and sales 45…Home CengageNOWv2| Online teachin X akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook | Show Me How Print Item Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000. a. Break-even point in sales units X units b. Break-even point in sales units required for the company to ach ve a target profit of $400 X units Feedback Check My Work a. Unit sales price minus unit variable costs equals unit contribution margin. Fixed costs divided by unit contribution margin = break-even point in units. b (Fixed costs Target profit) divided by unit contribution margin = sales units.
