Lusk Corporation produces and sells 14,000 units of Product X each month. The selling price of Product X is $22 per unit, and variable expenses are $16 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $73,000 of the $103,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice O($54,000) O O O $19,000 $49,000 ($49,000)

Blossom Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $105 each and have a variable cost per unit of $71. Fixed costs, including depreciation and amortization, are currently $180,000 per year. How much can either the fixed costs or the variable cost per unit increase before the company has a negative EBIT. (Round increase in fixed cost to 0 decimal places, e.g. 5,275 and variable cost to 2 decimal places, e.g. 15.25.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Fixed costs could increase by $  and variable costs could increase by $  per unit

[The following information applies to the questions displayed below.] Astro Company sold 22,500 units of its only product and reported income of $60,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 45% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $155,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($55 per unit) Variable costs ($50 per unit) Contribution margin Fixed costs Income 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution margin Contribution Margin Ratio Numerator: Contribution margin per unit $ 1 Fixed costs per unit $ 1,237,500 1,125,000 112,500 52,500 $ 60,000 $ Denominator: Selling price…

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $775 per set and have a variable cost of $335 per set. The company has spent $160,000 for a marketing study that determined the company will sell 61,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,200 sets of its high-priced clubs. The high-priced clubs sell at $1,145 and have variable costs of $605. The company will also increase sales of its cheap clubs by 12,200 sets. The cheap clubs sell for $365 and have variable costs of $155 per set. The fixed costs each year will be $9,850,000. The company has also spent $1,100,000 on research and development for the new clubs. The plant and equipment required will cost $37,400,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,800,000 that will be returned at the end of the project. The tax rate is 21 percent, and the cost of…

Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $100 per unit. The product's variable expenses are $70 per unit and its fixed expenses are $838,200 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What…

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Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $102,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company

Shamrock Inc. manufactures golf clubs in three models. For the year, the Beca line has a net loss of $5,700 from sales of $234,000, variable costs of $210,600, and fixed costs of $29,100. If the Beca line is eliminated, $16,500 of fixed costs will remain. Prepare an analysis showing whether the Beca line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number eg. -15,000 or parenthesis, e.g. (15,000).) Continue Eliminate Increase (Decrease)

Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $836,100 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…

Sheridan Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000. variable expenses of $363,000, and fixed expenses of $144,000. Therefore, the gloves and mittens line had a net loss of $27,000. If Sheridan eliminates the line, $36,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45))