Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000b)decreases by 12,650 increases by 25,300c) increases by 2750 decreases by 5500D)*** having issues with Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.Sales priceVariable costsFixed costs23 per unit5 per unit26,000 per monthAssume that the projected number of units sold for the month is 5,500. Consider requirements (b), (C), and (d) independently of eachother,Required:a. What will the operating profit be?b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher thanprojected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired DSuppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higherthan projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By howmuch? (Do not round intermediate calculations.)Operating profitdecreasesbyEXRequired D >This is a numeric cell,so please enternumbers only.

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Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000 b)decreases by 12,650 increases by 25,300 c) increases by 2750 decreases by 5500 D)*** having issues with

Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000 b)decreases by 12,650 increases by 25,300 c) increases by 2750 decreases by 5500 D)*** having issues with

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16 Variable Cost $10 and Sales (Unit 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22 Variable Cost: $12. and Sales (Units): 6.000. Should XYZ company make the change? Select one: O a. No. because sales will drop by 3.000 units. Ob. Yes, the company will be better off by $4,000. OC.No bacause the company will be worse off by 522.000. Odtis impossible to judge because additional information is needed. Oe No because the company will be worse off by $4. 000. Tfredrosts of 5300 000. he company s considering increasing the price of its units to S65 per unit, If the price
Apple Incorporated, the worlds leading manufacturer of mobile phones, currently sells their cellphones for 90,000 per unit. This phone costs 60,000 to manufacture. Pineapple Company, the second leading manufacturer of cellphones, revealed that they would be unveiling a new model of phone that will sell for 70,000. This new phone contains all the features and performs at par with Apple’s phones. To keep up with the competition, Apple management believes that they should lower the price to 70,000. The Marketing Department also believes that the new price will cause sales to increase by 10% even with a new cellphone in the market. Apple currently sells 150,000 units of their phones annually. What is the target cost of Apple’s products if the target operating income is 20% of sales?
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Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $61 would be appropriate given the present business environment. The company has a goal of earning $30 on each unit. What is the target unit cost of each hair dryer? Enter your answers without dollar signs or commas. ASUS 13 f4 E3 X 19 OLF 11 (12 3. & 4. 5 7. 8. E T. Y. F G H K t6 立
Easy Solutions limited manufactures electronic calculators. One of its top-selling calculators has a price of $50. Recently, a competitor entered the market and started offering a similar calculator at a price that is 20% below the $50 price of Easy Solutions. Company policy requires Easy Solutions to have a profit margin equal to 30% on sales of each of its products. 1.What target cost would have to be set for the Easy Solutions calculator to remain competitive and still meet the target profit margin of the company? 2.
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