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10
Tag price = $650
Discount rate = 33%
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- Weber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?The Widget Co. currently sells 800 widgets per week for a price of $7.00 each. Their market research indicates that for each $0.50 increase in price they will sell 25 fewer widgets per week. What price should they charge to maximize sales income?#7 Banachek, Inc. produces hair brushes. The selling price is P20 per unit and the variable costs are P8 per brush. Fixed costs per month are P4,800. If Banachek sells 15 more units beyond breakeven, how much does profit increase as a result?
- The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are $15 per watch.a. What is the firm’s gain or loss at sales of 8,000 watches? at 18,000 watches? b. What is the breakeven point? Illustrate by means of a chart.c. What would happen to the breakeven point if the selling price was raised to $31? What is the significance of this analysis?certain spare parts has a selling price of P150 if they would sell 8000 units per month. If for every P1.00 increase in selling price, 80 units less will be sold out per month. If the production cost is P100 per unit, find the price per unit for maximum profit per month. a. P150 b. P250 c. P175 d. P225The Warren Watch Company sells watches for $26, fixed costs are$155,000, and variable costs are $13 per watch.a. What is the firm’s gain or loss at sales of 9,000 watches? At 15,000 watches?b. What is the break-even point? Illustrate by means of a chart.c. What would happen to the break-even point if the selling price was raised to $33?What is the significance of this analysis?d. What would happen to the break-even point if the selling price was raised to $33 butvariable costs rose to $24 a unit?
- How many units of Ball Pen should be sold next month to break even? How many units of Sign Pen should be sold to earn a profit of P300,000.00? How many units of Ph Sign Pen should be sold to earn a profit of P150,000 net of 35% tax?The selling price per box for Cynthia's Cookies is $20.26. Fixed costs are $60,000 and the variable cost per box is $10.15. What is the break-even quantity? Round your answer to the nearest whole number. boxes If sales last year were 8,400 boxes, what was the net profit? Round your answer to the nearest dollar. $The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was P5,040. Harper's expectations for the coming year include the following: The sales price of the T-shirts will be P9 2.Variable cost to manufacture will increase by one-third 3.Fixed costs will increase by 10% 4.The income tax rate of 40% will be unchanged The selling price that would maintain the same contribution margin rate as last year is
- Dona Corporation manufactures and sells T-shirts imprinted with college name and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to breakeven. The net income last year was P5,040. Dona’s expectation for the coming year include the following: • The sales price of the t-shirt will be P9.00 • Variable cost to manufacture will increase by one-third. • Fixed cost will increase by 10% • The income tax rate of 40% will be unchanged a. The selling price that would maintain the same contribution margin rate as last year is ______________- b. The number of T-shirts Dona must sell to break even in the coming year is ______________ c. If Dona wishes to earn P22,500 in net income for the coming year, the company’s sales in pesos must be __________1. Russ Company sold 600 units of smartphones in 2020. Each product has a variable cost of $100 and was sold at $400. The company’s fixed cost was $15,000. In 2021, the company projected a net profit of $175,800.Using the contribution margin technique: a. How many units does the company need to sell in 2020 to reach their break evenpoint? b. How many sales in dollars does the company need in 2020 to reach their breakeven point? c. How many units does the company need to sell in 2021 to reach their targetedincome? d. How many sales in dollars does the company need in 2021 to reach theirtargeted income?A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventoryis 20%. The supplier offers a discount of 3% on orders of 1000 units or more. Whatwill be the saving (loss) of accepting the discount?