ToysRNZ produces and sells plastic lightsabres for $20 each. Their variable cost is $16 each. Relevant fixed costs are $120,000. ToysRNZ sells all lightsabres it produces, there is no inventory of unsold lightsabres. The relevant range of production is between 5,000 and 40,000 lightsabres. All information in this question relates to a single fiscal year. Because of the new Star Wars release, demand increases by 12,500 lightsabres. This will push production significantly beyond the relevant range. To satisfy the higher demand, ToysRNZ can rent additional production capacity. In order to maintain a profit of $30,000, what is the maximum amount that ToysRNZ should pay for the additional capacity?

Munabhai

Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are$4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. Thecompany sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes)Required:Treat each of the requirements as independent situations:a) Calculate the break-even point in units.b) What will the new break-even point be if fixed costs increase by 10 per cent? c) What was the company’s net profit for the previous year? (4 marks)d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?

Stratford Company distributes a lightweight lawn chair that sells for $ 40 per unit . Variable expenses are expenses total $ 672,000 annually . 40\% of sales , and fixed Required : Answer the following independent questions : 1. What is the product's CM per unit ?Refer to the original data . Assume that the company sold 44,000 units last year . The sales manager is convinced that a 7 % reduction in the selling price , combined with a increase in advertising expenditures , would increase annual unit sales by . Prepare two contribution format income statements : one showing the results of last year's operations , and one showing what the results of operations would be if these changes were made . ( Do not round intermediate calculations . Round " Per Unit " answers to 2 decimal places . ) 30\% Answer is not complete . Last Year Proposed Total Per Unit Total Per Unit Sales Less Variable expenses Contribution margin $ 24.00 $ 7.00 Less Fixed expenses Net operating income 5 - b . Would you…