Dunia Kids Company produces toys and plans to produce a small game. The new game will be sold for 3 dinars each. There is enough capacity in the company to produce just 16,000 units of the game each month. The variable expenses for manufacturing and selling one unit will be 1,250 dinars and the fixed costs associated with the game will be 35,000 dinars per month. The company's marketing department expects that the demand for the new game will exceed the sufficient production capacity, which requires renting an additional manufacturing space from another company at a fixed cost of 1,000 dinars per month. The variable costs in the leased facility amount to 1,400 dinars per unit due to the somewhat less efficient operations compared to the required main plant. Calculate the monthly break-even point in units and dinars. How many units must be sold to achieve a profit of 12,000 dinars per month. If the sales manager receives a deductible of 100 fils for each unit sold that exceeds the break-even point, how many units must be sold each month to achieve a target profit equal to 25% of fixed costs? 5:29 PM

Dunia Kids Company produces toys and plans to produce a small game. The new game will be sold for 3 dinars each. There is enough capacity in the company to produce just 16,000 units of the game each month. The variable expenses for manufacturing and selling one unit will be 1,250 dinars and the fixed costs associated with the game will be 35,000 dinars per month. The company's marketing department expects that the demand for the new game will exceed the sufficient production capacity, which requires renting an additional manufacturing space from another company at a fixed cost of 1,000 dinars per month. The variable costs in the leased facility amount to 1,400 dinars per unit due to the somewhat less efficient operations compared to the required main plant. Calculate the monthly break-even point in units and dinars. How many units must be sold to achieve a profit of 12,000 dinars per month. If the sales manager receives a deductible of 100 fils for each unit sold that exceeds the break-even point, how many units must be sold each month to achieve a target profit equal to 25% of fixed costs? 5:29 PM

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2PA: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...

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