Please help me fast I will give upvote thanku Grove Audio is considering the introduction ofa new model of wireless speakers with thefollowing price and cost characteristics. Salesprice $ 442.00 per unit Variable costs 202.00per unit Fixed costs 708,000 per year Assumethat the projected number of units sold forthe year is 4,350. Consider requirements (b),(c), and (d) independently of each other.What is the impacton operating profit if variable costs per unitdecrease by 10 percent? Increase by 20percent? Suppose that fixed costs for the yearare 20 percent lower than projected, andvariable costs per unit are

Selling price=$442 per unitVariable cost=$202 per unitFixed cost=708000Selling quantity=4350

Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 442.00 per unit Variable costs 202.00 per unit Fixed costs 708,000 per year Assume

Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 442.00 per unit Variable costs 202.00 per unit Fixed costs 708,000 per year Assume

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: 19. A monopoly is a market in which there is only one seller. This situation hurts consumers…

A: A monopoly market is a market structure in which there is only one dominant firm that controls the…

Q: A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market…

A: There is one defender and a challenger .For Challenger -Current Market Value = 85000 MV in year 1 =…

Q: 21. An amusement park's customers each have the demand curve for park rides given by Q = 11-0.5P,…

A: Demand Curve: A demand curve is a graphical representation of the relationship between the price of…

Q: Harry enjoys tennis but wants a high grade in his economics course. Figure 1 shows Harry's PPF.…

A: Every individual experiences a finite number of resources based on which they have to manage the…

Q: In an economy, the working-age population is 400 million. Of this total, 320.0 million workers are…

A: The labor force participation rate signifies the proportion of the working-age populace actively…

Q: Problem 3 Midterm 2014: Chile is a small open economy in the international market for funds that…

A: Liberalizing trade refers to the process of reducing or eliminating barriers and restrictions on the…

Q: [1] ARUA A. C. D. Which of the following predicts that, within a range, prices will not respond to…

A: A kinked demand curve is an economic concept that portrays a demand curve with a sudden change in…

Q: Suppose that Country X's government wants to increase output. If the multiplier equals 2.5 and the…

A: A multiplier measures the change in aggregate output or income resulting from a change in an…

Q: Utility functions incorporate a decision maker’s attitude towards risk. Let’s assume that the…

A: Utility Function:A utility function is a tool that represents a person's preferences for different…

Q: Consider a labour market with 3 types of workers: great workers, normal workers, and perpetually…

A: Labor Market Equilibrium:A state in which the demand for labor (workers) by firms matches the supply…

Q: This problem considers the decisions of a consumer whose preferences are given by u(C, 1) = C+ylogl,…

A: Individuals need to trade-off between how many hours to work and enjoy leisure. Both commodities are…

Q: K he will reduce his component lot sizes. He has developed the following data for one component, the…

A: Setup labor cost = $25/hrAnnual Holding cost (H) = $13/unitDaily production (P) = 992…

Q: 2. There are n ≥ 2 profit-maximising firms producing a homogeneous good, competing in quantity, and…

A: There is a mention in the question to answer only parts D and E of the question. In order to answer…

Q: Last year, Jarod left a job that pays $50,000 to run his own bike repair shop. Jarod’s shop charges…

A: Given:Jarod leaves a job that pays = $50,000 to run his bike shopFor a repair, he charges = $65Total…

Q: The BRICS initially had high economic growth rates and increasing values of exports and imports. In…

A: The global economy highlights the connections that exist within different markets connected through…

Q: The following calculator shows the demand curve for sedans (for example, Toyota Camrys or Honda…

A: The supply-demand connection is significant because it determines the pricing and quantity of most…

Q: The per capita production of type a is reduced by a factor of 1 − p and the per capita production of…

A: Production is the process of converting raw materials such as labor and unprocessed items into…

Q: Suppose that Cat nation has $125 million in money. There is only one bank in Cat nation and it holds…

A: Reserve are the part of deposit that is kept by the banks as per the rules of central bank. The…

Q: Suppose the Fed announces that it is raising its target interest rate by 75 basis points, or 0.75…

A: Federal Bank is defined the Central Bank of an economy. it is a government owned bank.

Q: How does the Coase Theorem illustrate the role of property rights and bargaining in resolving…

A: The Coase Theorem revolves around the economic resolution of externalities through bargaining and…

Q: what are the five main things you would do to recruit and retain a more diverse workforce?

A: In an organization, the workforce refers to the group of people who are employed by the company or…

Q: at point b) - The formula written down when MC is equated with MR is d(P x Q) / dQ. Then in the next…

A: In this case, we have to use the term marginal revenue. Marginal revenue actually shows the…

Q: The contents of a building are valued at $200,000 but insured for only $120,000. The policy insuring…

A: The insurance company will pay the lesser of the two amounts: the actual cash value of the contents…

Q: 9. Changes in the demand for money and and monetary policy Suppose interest rates increased. Adjust…

A: The demand for money is the amount of money that people want to hold at a given time. It is…

Q: the IS-LM model is considered. Autonomous consumption equals 100, autonomous investment equals 100,…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first 3 parts of the…

Q: Structural unemployment will have what effect in our AD/AS model? shift AS to the left. have no…

A: Unemployment is the the situation when the person is searching for work but is not able to get a…

Q: Let's assume you live 80 miles from the beach and it takes you two hours to drive there from home.…

A: Opportunity cost is the value of the next best alternative foregone when a decision is made,…

Q: For higher risk tolerance investors, it typically holds that Select one: Otheir utility indifference…

A: The ability and willingness of a person to withstand changes in the value of their investment…

Q: 3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of…

A: As per the guidelines we are allowed to answer the first three subparts only. Please post the…

Q: Discuss the differences between Keynesian (demand-side) and supply-side fiscal policies.

A: In the realm of economics, two prominent approaches to fiscal policy stand out: Keynesian,…

Q: 1. What is meant by scarcity? Why is it important in a study of economics? What does scarcity imply…

A: Scarcity refers back to the essential concept that resources, such as time, money, natural assets,…

Q: 4-2 Game Day Shuttle Service You run a game day shuttle service for parking services for the local…

A: Total revenue refers to the total quantity of goods and services sold. It is determined by…

Q: Price Level P 0 LRAS E YfY Inflationary Gap AS AD2 AD 1 Real Output

A: Recessionary Gap or Deflationary Gap is a situation when the eq. gdpGDP is lesser than the potential…

Q: please watch the video above and write the key points that you learn from video's content

A: The conclusion of a research paper is a critical section that summarizes and synthesizes the main…

Q: 16. Discrimination is not efficient. A company wishing to maximize efficiency should always hire the…

A: Discrimination describes the unequal treatment of person or group based on characteristics such as…

Q: Respond to the question with a concise and accurate answer, along with a clear explanation and…

A: In this exercise, we delve into the dynamics of a market using the Graph Input Tool. Our objective…

Q: wo bidders compete in a second price auction (i.e., the winning bidder pays the losing bidder’s…

A: Second-Price Auction: A type of auction in which bidders submit sealed bids, and the highest bidder…

Q: Suppose that Congress passes a law requiring employers to provide employees some benefit (such as…

A: The act of working and obtaining a living from it is what is known as employment. It's possible to…

Q: Consider a pure exchange economy with two goods. (a) Show that the gross substitute property implies…

A: General equilibrium has been characterised in the study of microeconomics as every marketplace…

Q: Discuss the Keynes's general theory

A: Keynes's General Theory challenges classical economics by asserting that fluctuations in aggregate…

Q: Consider the utility function U(1.2) In(1) + 2. Demand for good 1 is: z = R ifm 2 p . • zimifm< P₂…

A: Normal Goods: Normal goods are those for which demand increases as consumer income increases.…

Q: Suppose you manage a factory with ten workers. Each worker's output is determined by the equation q…

A: Profit maximization is an economic concept and goal pursued by businesses and firms. It refers to…

Q: Region A (the purple shaded area) represents the total producer surplus when the market price is 5…

A: Producer surplus is the difference between the amount a producer is willing to accept for a given…

Q: 2-5 Kraft and Cadbury When Kraft recently bid $16.7 billion for Cadbury, Cadbury’s market value…

A: The amount that a collection of products and services have increased in price during a specific time…

Q: Suppose that a surfboard designer owns a building and is renting part of the building's space to a…

A: The Coase theorem is an economic and legal theory that deals with two-party conflict settlement…

Q: In this week’s discussion we focus on market competition and the power of firms to set prices. (a)…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: 2. (All right, this one IS tricky. Use the hints and do the best you can!) Suppose there are 2…

A: Utility function of Cain : U (L ,R ) = 2min {L, R } Endowment of Cain : 4L and 8 R Let the price…

Q: 5. Discuss why the marginal cost curve (MC) has the following shape: 27 22.40 Costs 16 14 3 3…

A: Marginal cost (MC) is a fundamental economic concept that represents the additional cost incurred by…

Q: The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios…

A: Price elasticity is calculated as the percentage change in quantity divided by the percentage change…

Q: 1. Would a monetary policy intended to bring about disinflation cause a greater increase in…

A: "As per our policy, we can provide you with the answer to the first question only. Kindly repost the…

Question

Please help me fast I will give upvote thanku

Grove Audio is considering the introduction of
a new model of wireless speakers with the
following price and cost characteristics. Sales
price $ 442.00 per unit Variable costs 202.00
per unit Fixed costs 708,000 per year Assume
that the projected number of units sold for
the year is 4,350. Consider requirements (b),
(c), and (d) independently of each other.
What is the impact
on operating profit if variable costs per unit
decrease by 10 percent? Increase by 20
percent? Suppose that fixed costs for the year
are 20 percent lower than projected, and
variable costs per unit are

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: State the information

VIEW

Step 2: Calculate impact of change in variable cost on profit

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

6:08 PM ě 3.5KB/s 1l 82 4G+ 01:52:56 Remaining Multiple Choice If breakeven point is 100 units, each unit sells for P30, and fixed costs are P1,000, then on a graph the: total revenue line and the total cost line will intersect at P3,000 of revenue O total cost line will be zero at zero units sold revenue line will start at P1,000 total revenue line and the total fixed cost line will intersect at P3,000 of revenue 56 of 64 II レ

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost P8.00, annual demand of 40000, and ordering cost of P48. *
Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and unit variable costs of S5 per pair. If the company charges $15 per pair, how many pairs must it sell to break even ? And what dollar profit level would the company achieve if 15 million kits were sold ? Please show the necessary steps of how to get the results.
What can you say about negative and positive gross margin in sensitivity analysis
If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost perunit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. The demand for its product is p = 15 − x/125 , its production cost per unit is US$5.00 i (i) Derive the total revenue function,R(x) for company B.(ii) Derive the profit function,Π(x) for company B.(ii) How many t-shirts must company B sell to in order to break-even.(iv) How many t-shirts must company B sell to maximise its profit.
A jewelry firm buys semiprecious stones to make bracelets and rings The supplier quotes a price of S8.30 per stone for quantities of 600 stones or more, S8.70 per stone for orders of 400 to 599 stones, and $0.20 per stone for lesser quantities The jewelry firm operates 102 days per yea. Usage rate is 20 stones per day, and ordering costs are 540. The carrying cost is $3 per year for each stone 1) What is the candidate order quantty at the unit price of 50 207 (Round your answer to the nearest whole number) 2) What is the candidate order quantity at the unit price of $0.707 (Round your ansewer to the nearest whole number) 3) What is the candidate order quantity at the unit price of $8.307 (Round your answer to the nearest whole number.) 4) What order quantity is optimal the intent in to mnimize total annual conts? Round nteredmate calcuations to the nearest whole numbers before compuling the conesponding total annual costs (Round your answer to the nearest whole number 5) What is the…
The projected profit of a hi-tech recording disks retailer is Birr 200,000 for the current year based on sale volume of 200,000 units. The company has been selling the disks for $16 each; variable costs consist of the Birr 10 purchase price and Birr 2 handling cost. The retailer’s annual costs are Birr 600,000. Required: a. Calculate the breakeven point for the current year in units. b. What will be the company’s profit for the current year if there is a 10% increase in projected unit sales volume? c. Management is planning for the coming year when it expects that the unit purchase price of the disks will increase by 30%. What volume of dollar sales must the retailer achieve in the coming year to maintain the current year’s profit if the selling price remains constant at Birr 16
Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…
Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.
Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the dollar contribution margin per unit is inereased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income? O Decrease by $11,000 O Decrease by $1,000 O Increase by $1,000 O Increase by $11,000 O None of the above
A manufacturing plant wishes to buy a new equipment so the purchasing department did some research on different types of this equipment. In the monthly meeting, the purchasing department presented a report about the two types of equipment that they have found. Pertinent data are as follows: Туре А Туре В First cost P250,000 P350,000 Annual operating cost 30,000 22,000 Annual labor cost 52,000 34,000 Insurance and property taxes 3% 3% Labor/Payroll taxes 4% 4% Estimated life 10 10 If the minimum required rate of return is 19%, 1. What is the annual worth of Type A? [ Select ] 2. What is the annual worth of Type B? [ Select ] 3. Which machine should be selected? [ Select ] >
What are the fixed cost and variable cost form th ebelow list? 3000 Bottles price 25782.62 years Website hosting 1201.28Stickers printing price 5723.45Shipment of stickers 2280Delivery Order charges 3793.32Customs duty 744Clearance 360Shipping documentation 413MPL charges 554.38Rent of warehouse 6500Wages 3000Raw Materials 4000Unit Selling price