What a Racquet, Inc. sells unique, customized tennis rackets. The results from the past year are shown below. sales in units -300000 variable costs- 3500000 fixed costs- 600000 What price should it charge its customers given a desired 40% mark up on the cost of its rackets (round to the nearest cent)?

What a Racquet, Inc. sells unique, customized tennis rackets. The results from the past year are shown below. sales in units -300000 variable costs- 3500000 fixed costs- 600000 What price should it charge its customers given a desired 40% mark up on the cost of its rackets (round to the nearest cent)?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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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.)
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