Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio of the chairs is 60% and the company’s fixed costs for this year are expected to be $80,000. The company has a profit target this year of $85,000 and is considering an improved design which is expected to increase sales.  Question 14:   If the company decides to use the improved design, direct labour costs will increase by $10 per chair. How many chairs must the company now sell to reach its profit target, given the increased labour costs?

Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $31,000 per month. Fruit Computer Company sells 500 units per month at a sales price of $320. The company believes that it can increase the price if the computer quality is upgraded. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 10%. Which sales price level would give the desired results? (Round your answer to the nearest cent.) O $371.30 per unit O $262.00 per unit O $378.00 per unit. O $1056.00 per unit < Previous

Carlyle Lighting Products produces two different types of lamps: a floor lamp and a desk lamp. Floor lamps sell for $30 and desk lamps sell for $20. The projected income statement for the upcoming year follows: Sales                                  $600,000 Less: Variable costs            400,000 Contribution margin            200,000 Less: Fixed costs                 150,000 Operating income                $50,000 The owner of Carlyle’s estimates that 60 percent of the sales revenues will be produced by floor lamps and the remaining 40 percent by desk lamps. Floor lamps are also responsible for 60 percent of the variable expenses. Of the fixed expenses, one-third are common to both products, and one-half are directly traceable to the floor lamp product line. Required: By what percentage will profits increase with this change in sales volume? What is the theory behind the operating leverage concept?

Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows:   Variable Costs per Unit   Fixed Costs (total)   Direct materials $ 21 Overhead $ 85,000 Direct labor 46 General and administrative 65,000 Overhead 26     General and administrative 56      Using the total cost method what price should Pinkin charge?