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Could you please answer (a) section correctly. I gave the answer 401,579. But its wrong.   It is asking to (Round your intermediate unit calculations to the nearest whole number and round your final answer to the nearest whole dollar.). Could you please help me with the same and correct calculations.

Could you please answer (a) section correctly. I gave the answer 401,579. But its wrong.   It is asking to (Round your intermediate unit calculations to the nearest whole number and round your final answer to the nearest whole dollar.). Could you please help me with the same and correct calculations.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...
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Could you please answer (a) section correctly. I gave the answer 401,579. But its wrong.

 

It is asking to (Round your intermediate unit calculations to the nearest whole number and round your final answer to the nearest whole dollar.). Could you please help me with the same and correct calculations. 

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 44,000 speaker sets: $3,608,000 902,000 2,310,000 Sales Variable costs Fixed costs Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,986,000. (In the following requirements, ignore income taxes.) Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States. a. If variable costs remain constant, by how much must fixed costs change? b. If fixed costs remain constant, by how much must unit variable cost change? 4. Determine the impact (increase, decrease, or no effect) of the following operating changes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States. a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to the nearest whole dollar.) b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.) Show less A
Transcribed Image Text:Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 44,000 speaker sets: $3,608,000 902,000 2,310,000 Sales Variable costs Fixed costs Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,986,000. (In the following requirements, ignore income taxes.) Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States. a. If variable costs remain constant, by how much must fixed costs change? b. If fixed costs remain constant, by how much must unit variable cost change? 4. Determine the impact (increase, decrease, or no effect) of the following operating changes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States. a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to the nearest whole dollar.) b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.) Show less A
Fixed costs decrease by 401,579 а. %24
Transcribed Image Text:Fixed costs decrease by 401,579 а. %24
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