Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company has considering investing in new technology that would decrease the variable cost per unit to $8 per unit and increase fixed costs to $33,000. The company expects the new technology to increase production and sales to 9,000 units of product. ?What sales price would have to be charged to earn a $93,000 target profit $8 O $16 O $22 $18 $20

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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MERSİN ÜNİVERSİT..
None O
Chile's, Inc. currently produces and sells 4,000 units of a product that has a
contribution margin of $6 per unit. The company sells the product for a sales
price of $20 per unit. Fixed costs are $18,000. The company has considering
investing in new technology that would decrease the variable cost per unit
to $8 per unit and increase fixed costs to $33,000. The company expects the
new technology to increase production and sales to 9,000 units of product.
?What sales price would have to be charged to earn a $93,000 target profit
$8 O
$16 O
$22
$18 O
$20
Quiet Truck manufactures part WB23 used in several of its truck models.
10,000 units are produced each year with production costs as follows. Quiet
Truck has the option of purchasing part WB23 from an outside supplier at
$11.20 per unit. If part WB23 is outsourced. 40% of the fixed costs cannot be
hp
HEWLETT-PACKARD
Transcribed Image Text:MERSİN ÜNİVERSİT.. None O Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company has considering investing in new technology that would decrease the variable cost per unit to $8 per unit and increase fixed costs to $33,000. The company expects the new technology to increase production and sales to 9,000 units of product. ?What sales price would have to be charged to earn a $93,000 target profit $8 O $16 O $22 $18 O $20 Quiet Truck manufactures part WB23 used in several of its truck models. 10,000 units are produced each year with production costs as follows. Quiet Truck has the option of purchasing part WB23 from an outside supplier at $11.20 per unit. If part WB23 is outsourced. 40% of the fixed costs cannot be hp HEWLETT-PACKARD
MERSİN ÜNİVERS.
- Price Company sells its product for $100 per unit. The company's accountant
provided the following cost information. What is the company's break-even
?point
Manufacturing costs:
Selling costs:
Administrative costs:
$35,000 + 35% of sales
$15,000 + 15% of sales
$20,000 + 10% of sales
$175,000
$107,143 O
None
$250,000
$136,364 O
14
Perry Company's break-even point is 20,000 units. Its product sells for $25
and has a $10 variable cost per unit. What is the company's total fixed cost
?amount
$180,000 O
hp
HEWLETT-PACKARD
Transcribed Image Text:MERSİN ÜNİVERS. - Price Company sells its product for $100 per unit. The company's accountant provided the following cost information. What is the company's break-even ?point Manufacturing costs: Selling costs: Administrative costs: $35,000 + 35% of sales $15,000 + 15% of sales $20,000 + 10% of sales $175,000 $107,143 O None $250,000 $136,364 O 14 Perry Company's break-even point is 20,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost ?amount $180,000 O hp HEWLETT-PACKARD
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