Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the contribution margin ratio is:

Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the contribution margin ratio is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

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At the current selling price of $150 per unit, the contribution margin ratio is:

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Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
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.
Required information Skip to question [The following information applies to the questions displayed below.] Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the dollar volume of sales per month necessary for Accents to break-even is:
Required information Skip to question [The following information applies to the questions displayed below.] Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $10,400?
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.
Required information [The following information applies to the questions displayed below.] Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. (Unless otherwise stated, consider each requirement separately.) e. What questions would have to be answered about the cost-volume-profit analysis simplifying assumptions before adopting the price cut strategy of part d? (Select all that apply.) Check All That Apply Does the increase in volume move fixed expenses into a new relevant range? Does the increase in volume move variable expenses into new relevant range? Are variable expenses really linear? Are fixed expenses really linear?
Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month.(Unless otherwise stated, consider each requirement separately.) e. What questions would have to be answered about the cost–volume–profit analysis simplifying assumptions before adopting the price cut strategy of part d? (Select all that apply.) Check All That Apply Does the increase in volume move fixed expenses into a new relevant range? Does the increase in volume move variable expenses into a new relevant range? Are variable expenses really linear? Are fixed expenses really linear?
Required information [The following information applies to the questions displayed below.] Trevino Company makes and sells products with variable costs of $24 each. Trevino incurs annual fixed costs of The current sales price is $87. Note: The requirements of this question are interdependent. For example, the $252,000 desired profit introduce Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requiremen applies to the subsequent requirements. f. If variable cost rises to $30 per unit and fixed costs are $280,000, what level of sales is required to earn the desired your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req F1 If variable cost rises to $30 per unit and fixed costs are $280,000, prepare an income statement using the contribution margin format. Req F2 TREVINO COMPANY Income Statement Sales Variable cost Contribution…
Required information [The following information applies to the questions displayed below.] Munoz Company makes and sells products with variable costs of $24 each. Munoz incurs annual fixed costs of $441,000. The current sales price is $87. Note: The requirements of this question are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required e. If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req E1 Req E2 If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Note: Do not round intermediate calculations. Round your final…
XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If XYZ increases its selling price by 10%, its contribution margin ratio will: Select one: a. None of the given answers. b. Cannot determine with the information given. c. increase. d. decrease. e. not change.
Accents Associates sells only one product, with a current selling price of $160 per unit. Variable costs are 20% of this selling price, and fixed costs are $40,000 per month. Management has decided to reduce the selling price to $155 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $160 per unit, the dollar volume of sales per month necessary for Accents to break-even is: $250,000 $50,000 $40,000 Some other amount. Please answer fast i give you upvote.
XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: O a. None of the given answers. O b. 7,500 O c. 11,250 O d. 9,000 O e. 12,000