2. Alliss Limited manufactures de-luxe juicing machines. Each machine has a wholesale price of £225. Variable costs of manufacture are £56 per machine. Because of increased competition, the sales director has reduced the level of sales that the company can realistically expect to make. The actual sales level in 2020 was 3561 machines, but the budget for 2021 is only 3250 machines. Fixed costs for the year 2020 are budgeted at £560 000.   Advise the company's directors on whether they should increase the selling price.

Whitewater Inc sells a product that has variable costs of $40 and a selling price of  $95. Its current sales total $304,000 per month. Fixed manufacturing costs total $40,000 per month  and fixed selling and administrative costs total $35,000 per month. The company is considering a  proposal that will increase the selling price by 10%, increase the fixed manufacturing costs by  10%, and increase the fixed selling and administrative costs by $1,500. Part 1:  Compute the company's current break-even point in units.  Part 2:  Compute the company's current income and the current margin of safety.  Part 3:  Compute the new contribution margin per unit assuming the proposal is accepted.  Part 4:  Compute the new break-even point in units assuming the proposal is accepted.  Part 5:  Compute the company's income assuming the proposal is accepted and sales total 3,300 units.   Part 6:  Should the proposal be accepted?

Sinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O A. 15,000 units O B. 12,000 units O C. 16,500 units O D. 12,960 units

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