*Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard, advances in technology have altered the market somewhat, and management now believes that the company can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $35,000 for an in-depth market study. Sales salaries (excluding commission) will be $88,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which product is introduced. Required: 1. Compute the unit contribution margin for both models. Note: Round your answers to 2 decimal places. Unit contribution margin Basic Enhanced

(Related to Checkpoint 13.4) (Using break-even analysis) Mayborn Enterprises, LLC runs a number of sporting goods businesses and is currently analyzing a new T-shirt printing business. Specifically, the company is evaluating the feasibility of this business based on its estimates of the unit sales, price per unit, variable cost per unit, and fixed costs. The company's initial estimates of annual sales and other critical variables are shown here: E a. Calculate the accounting and cash break-even annual sales volume in units. b. Bill Mayborn is the grandson of the founder of the company and is currently enrolled in his junior year at the local state university. After reviewing the accounting break-even calculation done in part a, Bill wondered if the depreciation expense should be included in the calculation. Bill had just completed his first finance class and was well aware that depreciation is not an actual out-of-pocket expense but rather an allocation of the cost of the printing…

Easy Removals offers a complete interstate, door-to-door solution for residential and commercial removals. As the market for removal services is very competitive, Easy Removals aims to deliver services at a low cost. Its management accountant prepared the following information - the growth, price-recovery, and productivity components that explain the change in operating income from 2020 to 2021.   Growth Component Price-recovery Component Productivity Component Revenue effect $ 310,000 F $ 98,000 U - Cost effect  $  210,000 U $ 32,000 U $ 128,000 F   Suppose that during 2021, the market growth rate in the industry was 10%. The number of jobs billed was 400 and 500 in 2020 and 2021, respectively. Any increase in market share more than 10%, and any change in selling price, are the result of Easy Removals’ strategic actions.   Required: Compute how much of the change in operating income from 2020 to 2021 is due to the: (a) industry-market-size factor; (b)…

Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows:     Annual sales   2,500 units Selling price per unit $ 304   Variable costs per unit:       Production $ 125   Selling $ 49   Avoidable fixed costs per year:       Production $ 50,000   Selling $ 75,000   Allocated common fixed corporate costs per year $ 55,000   If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product.At what selling price would the new product be just breaking even?     $232 per unit     $282 per unit     $250 per unit     $246 per unit

I am struggling to figure out what I am doing wrong to correctly answer 7.

please answer with complete solution

Warner clothing is considering the introudciton fo a new baseball cap for sales by local vendors. The comapny has collected the following price and cost characteristics.  A. What number must Warner sell per month to break even? B. What number must Warner sell per month to make an operating profit of $30,000?

5. A supplier has offered us 1200 pounds of filberts for $950. Should these filberts be purchased? If yes, how much would profits increase?   Need explanation for the answer please

i need the answer quickly

Heat Inc. sells computer hard drives, and the market is competitive (i.e., sales price will not be affected by Heat's sales volume). Its EBIT for 2022 was $69,000 when the sales quantity was 500 units. In 2023, its EBIT was $119,000 when the sales quantity was 700 units. a) Calculate its contribution margin per unit and total fixed costs. b) Calculate the degree of operating leverage for 2022 and 2023. c) If Heat changes its production technology by doubling its fixed costs and the breakeven (indifferent) quantity is 1, 120 units, find the new contribution margin. Heat has $40,000 debt that pays annual interest of 15% and 2,000 outstanding common shares that are trading at $25. Its tax rate is 30% . d) Calculate EPS for 2022 and 2023. e) Calculate the degree of financial leverage for 2022 and 2023. f) Calculate the degree of total leverage for 2022 and 2023. g) Heat considers borrowing $20,000 new debts (that also pay 15% interest) to buy back common shares (at current price of $25 per…