The amount of extra units should it sell to justify the decrease in the price. Given information: Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

Question

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Answer 1

Question

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

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Answer 2

Question

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

Answer 6

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

Answer 7

Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

Answer 8

b)

To determine

The number of units the firm should sell to gain the desired income.

Answer 9

b)

To determine

The number of units the firm should sell to gain the desired income.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3 - Prob. 1LO Ch. 3 - Prob. 2LO Ch. 3 - Prob. 3LO Ch. 3 - Prob. 4LO Ch. 3 - Prob. 5LO Ch. 3 - Prob. 6LO Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - Prob. 3Q Ch. 3 - 4. If Company A has a projected margin of safety...

The number of units the firm should sell to gain the desired income.

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