Compute company profit with products C & D and with products C & E.Net profit with products C & DNet profit with products C & E$Save for Later$Should Cullumber Company introduce product E next year?Attempts: 0 of 1 used. Submit Answer Cullumber Company operates a small factory in which it manufactures two products: C and D. Production and sales results for lastyear were as follows.Units soldUnit selling priceUnit variable costsUnit fixed costsC9,000 19,800$94$754920DNet profit with products C & D41For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold.The research department has developed a new product (E) as a replacement for product D. Market studies show that CullumberCompany could sell 11,000 units of E next year at a price of $115; unit variable costs of E are $40. The introduction of product E willlead to a 11% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product,it expects next year's results to be the same as last year's.Compute company profit with products C & D and with products C & E.$20

The entity may produce more than one product. The company generally opts for products that offer…

Answered: Units sold Unit selling price Unit…

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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Flex gel produces special type of gel pens with production capacity at normal capacity was 150,000 units. Variable cost =P16 per unit Fixed cost=P900,000 Currently the company was operating at the capacity level of 80% If it wants to earn profit of P600,000, what has to be the price of the product per unit?
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Basic $ 19.00 $ 12.00 36,000 Custom $ 54.00 $ 33.00 24,000 Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $396,900. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: Do not round Intermediate calculations. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Note: Do not round intermediate calculations.
3C AND 3D
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Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operations
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