The editor of Uli magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity Demanded $7.91 24,900 $6.95 31,900 $5.89 36,100 Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Price Profit/(loss) $7.91 $enter a dollar amount $6.95 $enter a dollar amount $5.89 $enter a dollar amount A price of ($enter) the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit.

The editor of Uli magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity Demanded $7.91 24,900 $6.95 31,900 $5.89 36,100 Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Price Profit/(loss) $7.91 $enter a dollar amount $6.95 $enter a dollar amount $5.89 $enter a dollar amount A price of ($enter) the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...

See similar textbooks

Price		Quantity Demanded
$7.91		24,900
$6.95		31,900
$5.89		36,100

Price		Profit/(loss)
$7.91		$enter a dollar amount
$6.95		$enter a dollar amount
$5.89		$enter a dollar amount

Similar questions

If the publisher believes that the price per copy could be increased to $21.95 and not affect the anticipated demand of 3800 copies, what action would you recommend? What profit or loss can be anticipated?
Monthly costs of producing and delivering the magazine include $96,900 of fixed costs and variable costs of $2.40 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Price $7.92 $6.99 $5.89 LA LA Profit/(loss)
Over the course of a customer’s lifetime of reading a weekly magazine priced at $4 per issue, what is the value of the magazine? Assume a customer acquisition cost of $12, a retention cost of $0, printing and distribution costs of $1, an annual retention rate of 77% and an annual discount rate of 2.6%. Assume that price and non-marketing variable costs remain constant over the customer’s lifetime of reading the magazine.
When making the determination of whether or not a selling price should be increased there are many different aspects to take into consideration. Paulsen Company sells only one product. The regular selling price is $50. Variable costs are 70% of this selling price, and fixed costs are $7,500 per month. Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. What cost-volume relationships should Paulsen take into consideration for the original price and the proposed new selling price? Discuss the non-monetary factors that should be taken into consideration before raising a selling price.
Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $18,000. Assuming its selling price is $42.50 per unit and its variable costs per unit are $30, how many units must be sold to achieve its target given that total fixed costs are $69,000? (Do not round intermediate calculations.) ook Multiple Choice rences 4,448 5,520 3,712 4,080
A book publisher has fixed costs of $360,000 and variable costs per book of $11.00. The book sells for $27.00 per copy. a. How many books must be sold to break even? (Roundup your answer to the next whole number.) b. If the fixed cost increased, would the new break-even point be higher or lower? Higher Lower It would remain the same There is insufficient information to answer this question c. If the variable cost per unit decreased, would the new break-even point be higher or lower? Higher Lower It would remain the same There is insufficient information to answer this question
You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $0.01. You expect the selling price to average $0.05. a) What is the break-even point in dollars? b) What is the break-even point in units?
When making the determination of whether or not a selling price should be increased there are many different aspects to take into consideration. Paulsen Company sells only one product. The regular selling price is $50. Variable costs are 70% of this selling price, and fixed costs are $7,500 per month. Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. In a response of 400-600 words answer the following: What cost-volume relationships should Paulsen take into consideration for the original price and the proposed new selling price? Discuss the non-monetary factors that should be taken into consideration before raising a selling price.
Miller Books is considering publishing a book about meditation. The fixed costs to publish the book is estimated at $160,000. Variable material costs are estimated at $6 per book. Demand over the life of the textbook is estimated at 4,000 copies. Miller books anticipates that they can sell the books for $46 per unit. a) Write an expression for total revenue b) Write an expression for total cost c) Write an expression for total profit d) Find the break-even point e) Recommend a strategy if Miller will not be able to sell more than 3,500 copies.
1. Jeff Music sells its brand of banduria at $167.00 each. The company spends costs of $38.00 to produce each banduria. The corresponding weekly fixed costs are $16,900.00. a. What is the linear equation of the weekly profit, P, to the quantity of banduria produced, X. b. Determine the break-even quantity? c. What is the break-even revenue? d. What will be the profit or loss if there will be 147 qty of banduria?
The Valdez Mug Company manufactures plastic mugs that sell to wholesalers for P4.00each. Variable and fixed costs are as follows: Valdez Mug produced and sold 10,000 cups during April 2019. There were no beginning or ending inventories.Required:a. Determine Valdez Mug's monthly break-even point in units.b. If monthly sales increase by 500 cups, what will be the change in monthly profits?c. If Valdez Mug is now subject to an income tax of 40 percent, what dollar sales volume is required to earn a monthly after-tax net income of P12,000?
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)