Sheridan Company wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected: Annual sales 50000 bottles Projected selling and administrative costs $8500 Desired profit $62000 The target cost per bottle is $0.59. $0.24. $0.17. $0.76.

Skip Consulting helped Schmidt Roofers put various cost saving techniques into place. Thecontract specifies that Skip will receive a flat fee of $70,000 and an additional $19,000 if Schmidtattains a target amount of cost savings. Skip estimates a 20% chance that Schmidt will reach thetarget for cost savings. Assuming that Skip uses the expected-value approach, what is thetransaction price for this product?a. $19,000b. $70,000c. $73,800d. $89,000

Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:   Basic Flash Selling price per watch $ 450 $ 550 Variable cost per watch $ 370 $ 310 Expected sales (watches) per year 75,000 25,000 The total fixed costs per year for the company are $1,632,000. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?

2. What revenue would the sale of the breakeven quantity for $5.50 per gallon generate? IceLess is an anti-icing solution sold in gallon plastic jugs.  It is poured into the windshield washer bottle of your car.  Wash your windshield and the solution prevents the glass from icing over for about four hours.  Production incurs the following fixed and variable costs.  It is priced initially at $5.50 per gallon. Fixed costs (per year)                        Variable Costs per gallon    Rent: $18000                                   Glycol: $1.50    Utilities: 13200                                FreezeFree 312: .50    Managerial salaries: 20000            Mfg labor: .20    Flammability  permit: 12000           Packaging: .20    Other fixed expense:  2400            Inert ingredients: .60    Total fixed: $65600                        Advertising: .30                                                                       Total: $3.30