XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $70 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change?
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- COVID 19 Co. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. COVID 19 Co. is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the Company need to sell for profit to remain the same as before the price change? Select one: a. 11,250 b.12.500 C 12,000 d.10,000XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $65 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: а. 10,000 b. 9,000 c. None of the given answers. d. 7,500 е. 11,250XYZ company currently sells 15,000 units a month for $ 50 each , has variable costs of $ 20 per unit , and fored costs of $ 300,000 . The company is considering increasing the price of its units to $ 80 per unit . If the price is changed , how many units will the company need to sell for profit to remain the same as before the price change ? Select one . 10,000 . 7.500 9,000 d . 11.250 e None of the given answers .
- Totally Tanked, Inc. sells tank tops. The firm is considering making some changes in order to achieve its goal of increasing its profit. If it makes no changes, the company anticipates the following for the coming year: # of tank tops to be sold 3,000,000 Selling price per tank top $20 Variable expense per tank top $8 Fixed expenses for the year $20,000,000 Maria, one of the company’s managers suggests the following: “I think if we cut our price to $17 a tank top, we will increase our sales to 3,700,000 tank tops. I think that will help us achieve our goal”. Question: Prepare a contribution margin income statement (CMIS) for each of the two scenarios below: A) The company makes no changes B)The company implements Maria’s suggestion.A tire manufacturer estimates total production costs to be $270,000 + $57 per tire made. The company market analysis expert has predicted sales volume based on the price of the tire as shown in the table below. Assuming that production is limited to the options shown in the table, what is the company's maximum monthly profit? Express your answer in $ to the nearest $1,000. Tire Cost Sales per Month $ $90 100,000 $100 95,000 $110 80,000 $120 65,000 $130 45,000Required information Skip to question [The following information applies to the questions displayed below.] Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the contribution margin ratio is:
- Required information Skip to question [The following information applies to the questions displayed below.] Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $10,400?Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year. What is the breakeven point in units at the current selling price? O A. 18 units ов. 10,500 units O C. 3,000 units O D. 7,000 unitsSHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU A company sells its product at P30 per unit.Unit variable cost is P22 and total fixed coststotal to P100,000 per month. The companycurrently pays salaries of P40,000 per monthbut with no commission. It is considering acompensation plan whereby the salespeoplewould receive 5% commission based onsales, but their salaries would be decreasedto P25,000 per month. At what sales level isthe company indifferent between the twocompensation plans?
- Required information Skip to question [The following information applies to the questions displayed below.] Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the dollar volume of sales per month necessary for Accents to break-even is:Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's expected sales to reach its targeted profit? Select one: а. Expected sales would be $270,000 А. Expected sales would be $270,000 sales would be $270,000 b. Expected sales would be $900,000 c. Expected sales would be $720,000 d. Expected sales would be $450,000A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?