.00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the projected number of units sold for the year is 4,750. Consider requirements (b), (c), and (d) independently of each other. What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What im

Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of thethree models: The company is considering lowering the price of Model A to $27 in an effort toincrease the number of units sold. Based on the results of price changes that havebeen instituted in the past, Tennis Products’ chief economist estimates the arc priceelasticity of demand to be 2.5. Furthermore, she estimates the arc cross elasticity ofdemand between Model A and Model B to be approximately 0.5 and between ModelA and Model C to be approximately 0.2. Variable costs per unit are not expected tochange over the anticipated changes in volume.a. Evaluate the impact of the price cut on the (i) total revenue and (ii) contributionmargin of Model A. Based on this analysis, should the firm lower the price ofModel A?b. Evaluate the impact of the price cut on the (i) total revenue and (ii) contributionmargin for the entire…

Bronco Truck Parts expects to sell the following number of units at the prices indicated under three different scenarios in the economy. The probability of each outcome is indicated. Outcome A B C Probability 0.20 0.20 0.60 Units 390 680 1,090 Total expected value Price $25 34 39 What is the expected value of the total sales projection?

Sampson Corp. is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are shown next: Possible Sales Market Reaction in Units Probabilities Low response Moderate response High response Very high response 60 0.10 70 0.30 100 0.50 130 0.10 a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.) Expected value units b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation units

A product currently sells for $16 per unit. The variable costs are $8 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by %40 and Fixed Costs by %50 but sales will increase to 32,000 units per year. (a) At what selling price do we break even, and (b) If the selling price is to be kept same ($16/unit) what will the annual profit be?

Need help figuring out part 2 of following question; I tried calculating it in excel but another student got a different answer, so I'm wrong.  "If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? total increase in sales required:    ???"

Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Market Reaction Sales in Units Probabilities Low response 25 0.20 Moderate response 30 0.10 High response 50 Very high response 70 0.10 0.60 a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.) Expected value units b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation units

Required: A. What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bats    at    the   current    sales    mix?     B. What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bat at    the    current    sales    mix    if    the    tax    rate    is    40%? C. The     Accountant is     considering     buying     new     production     equipment.     The     new    equipment    will    increase    fixed    cost    by    twice    and    will    decrease the    variable    cost    by    50%.    Assuming    the    same    sales    mix,    how    many    of    each    type    of    bat does    Nadalneed    to    sell    to    break    even?

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $270,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $520,000 and current break-even units are 9,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Super Electronics wants to introduce a new model of smart TV into the market. The estimated price of each smart TV is RO 300. The required profit margin is 20% of sales. The target cost for the new smart TV is: a. RO 360 b. RO 240 c. RO 260 d. RO 340