Forrester Company is considering buying new equipment that would decrease monthly fixed costs from $360,000 to $360,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $1,200,000 and current break-even units are 12,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be:
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- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.Sloan Corporation has the following estimates for its new gear assembly product: Price per unit = $1,220 Variable cost per unit = $380 Fixed costs = $3.75 million Quantity = 90,000 units Suppose the company believes all its estimates are accurate only to within +/- 15%. A. What values should the company use for the four variables given here when it performs its best-case scenario analysis? B. What should it use for its worse-case scenarios analysis? C. Are there any potential concerns with the building of these scenarios?Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $1,220 per unit; variable costs $3.75 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? Pls don't copy answer pls
- Choose the correct letter of answer Patience company is considering a proposal to replace an existing machine used for the manufacture of Product A. The new machine is expected to increase annual fixed costs by P120,000; however, variable costs should decrease by 20% because of a reduction in direct labor hours and more efficient usage of direct materials. Before this change was under consideration, Patience had budgeted Product A sales and cost for 2021 as follows: (1) Sales, P2,000,000; (b) variable costs, 70% of sales; and (c) fixed costs, P400,000.o Assuming that Patience implemented the above proposal by January 1, 2021, what would be the increase in budgeted operating profit for Product A for 2021? a. P160,000b. 20%c. 47% d. none of the aboveFlanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here. The following names are to be used when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss Revised Fixed costs = 56000 + 18250 = $74250 Variable cost per unit = 1.75 - 0.15 = $1.6 per unit Contribution margin per unit = Sales price per unit - Variable cost per unit = 2.15 - 1.6 = $0.55 per unit Breakeven point in units = Fixed costs/ Breakeven point in units = 74250/0.55 = 135000 units Breakeven sales revenue = 135000*2.15 = $290,250 1. Complete the following contribution margin income statement to properly reflect the break-even information given in the problem. Rounded to whole dollars and shown…E4 Location Breakeven Analysis (also known as cost-volume analysis) is a technique used to make an economic comparison of location alternatives. The fixed and variable costs of three potential locations are listed below: LOCATION FIXDED COST PER ANNUM VARIABLE COST PER UNIT A 40 000 80 B 70 000 65 C 120 000 3 The expected selling price of the product is R 150.00. The company wishes to find the most economical location for an expected volume of 2500 units per year. Plot the costs for each location, with costs on the vertical axis and annual volume on the horizontal axis and identify the location that has the lowest total cost for the expected production volume.
- Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,080 per unit; variable cost = $300 per unit; fixed costs = $4.81 million; quantity = 71,000 units. Suppose the company believes all of its estimates are accurate only to within ±16 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.)Calculate the profitability of the following proposal using Return on investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 a. 16.53% b. All the options are wrong c. 3.42% d. 4.62%You have the following information about a company in 2021: Total Costs were $174.7 million. Assume the Variable Costs were 60% and the rest were Fixed Costs. Sales Volume in thousands was 361.7 and will not change in the future. Cost inflation in 2022 was 5%. What was the variable cost per unit in 2022? Select one: O A. $290.1 O B. $105.2 O C. $483.5 O D. $304.3
- Groove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.sales price 443.00 per unit.variable cost 203.00 per unit.fixed costs 715,000assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other. [a] What will the operating profit be? [b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent? [c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty? [d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year Kindly solve b c and durrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 unitsThe NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year? A. P1,175,000 B. P950,000 C. P425,000 D. P1,075,000