Gymnast Clothing manufactures expensive soccer cleats for sale to college bookstores in runs of up to 500. Its cost (in dollars) for a run of x pairs of cleats is C(x) = 3,050 + 8x + 0.1x2 (0 Sx s 500). Gymnast Clothing sells the cleats at $120 per pair. Find the revenue and profit functions. Revenue = Profit = How many pairs of cleats should Gymnast Clothing manufacture to make a profit? at least pairs

Gymnast Clothing manufactures expensive soccer cleats for sale to college bookstores in runs of up to 500. Its cost (in dollars) for a run of x pairs of cleats is C(x) = 3,050 + 8x + 0.1x2 (0 Sx s 500). Gymnast Clothing sells the cleats at $120 per pair. Find the revenue and profit functions. Revenue = Profit = How many pairs of cleats should Gymnast Clothing manufacture to make a profit? at least pairs

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2CMA

See similar textbooks

Similar questions

Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 125 boots for $31 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $12, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organizatio
ABC operates a consignment shop where she sells clothes for women and children. The average number of consignments sold per month is 1,000. The average material cost and the selling price of each consignment are $8 and $20, respectively. The monthly fixed costs to run this business are given below: Rental cost: $750Utilities: $150Advertising: $35Insurance: $100Labor cost: $4,000 Using Excel spreadsheet / worksheet, determine Anna's profit. Attach excel solution.
Megan's Bridal Shoppe is a bridal shop that offers wedding gowns. Each outfit sells for $1,000 on average, with variable expenses of $400 and fixed costs of $90,000. When 200 gowns are sold, what is the Bridal Shoppe's operational income?
Diamond Boot Factory normally sells its specialty boots for $24 a pair. An offer to buy 125 boots for $16 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9, and special stitching will add another $3 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.$fill in the blank 1 Income/Loss? Should Diamond Boot Factory accept or reject the special offer? Yes or No
Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: product type sales price price invoice cost sales commission high quality 1850 840 100 medium quality 920 620 40 Three-quarters of the shop’s sales are medium-quality bikes. The shop’s annual fixed expenses are $270,400. (In the following requirements, ignore income taxes.)a. What is the shop’s break-even sales volume in dollars? Assume a constant sales mix.b. How many bicycles of each type must be sold to earn a target net income of $126,750? Assume a constant sales mix.
Charlotte sells widgets that cost $50 each to purchase and prepare for sale. Annual sales are 10,000 widgets, carrying costs are 15% of inventory costs, and Charlotte incurs a cost of $25 each time an order is placed. (a) What is the EOQ? (b) What will be the total inventory costs if the EOQ amount is ordered? (c) Suppose that Charlotte's supplier decides to offer a 3% cash discount if products are ordered in increments of 1250. How many widgest should Charlotte order each time an order is placed to minimize total inventory costs?
Diamond Boot Factory normally sells its specialty boots for $375 a pair. An offer to buy 100 boots for $275 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $250, and special stitching will add another $20 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.$fill in the blank 1 Income Should Diamond Boot Factory accept or reject the special offer?Accept the special offer.
A textbook publisher produces a textbook for $50 per book and sells to the Campus Bookstore for $75 per unit. The bookstore sells the textbook new for $100 and used for $60. It is able to buy unlimited amounts of used books from a secondary supplier for $50. The bookstore buys a lot of 250 new books from the publisher. What is the net profit (sales-cost) to the publisher for this order? (a) $25 (b) (250)(75-50) = $6250 (c) $10,000 (d) $2500
Sportsbags Inc. makes and sells hockey bags for students. Financial projections for this line of products are revenue of $896,000, total variable costs of $242,920, and fixed costs of $595,000. (a) How much is the contribution margin and the contribution rate?(b) How much of this product line does the business need to sell to break even?(c) If the business was to save $11,000 in variable costs by offering fewer colours of hockey bags, how much of this product line does the business need to sell to break even?(d) If a specialized logo was printed on the hockey bags, the variable costs would increase by 3%, and the fixed costs would increase by $12,000. If the price of the hockey bags was then increased by 4%, what would be the resulting net income?
Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250