1.
Introduction: Profit is the gain or earning of a business which represents the difference between a company’s spending and earnings.
The profit that product SC will earn at a price of $24 by assuming that the estimation of marketing managers is accurate.
2.
Introduction: Profit is the gain or earning of a business which represents the difference between a company’s spending and earnings.
The units that company N would need to sell at a price of $24 to earn the exact same profit that it currently earns at a price of $20.
3.
Introduction: Profit is the gain or earning of a business which represents the difference between a company’s spending and earnings.
The percentage decrease in unit sales if company N increases the price of product SC to $24 and earns the same profit it is currently being earned at a price of $20.
4.
Introduction: The point at which the profit of a company or business is maximized, that point refers to the optimal selling price.
(a) The optimal selling price, (b) profit at the optimal selling price, and (c) additional profit which is earned at the optimal price compared to the price of $24 by downloading the optimal pricing model and Inputting all of the pertinent data related to Sea Breeze Skin Cleanse with the assumptions of a 20% increase in selling price which causes a 30% decrease in unit sales.
5.
Introduction: Optimal profit refers to the earning at a price where a seller/company or business makes the maximum profit.
Requirement 5
(a) The optimal selling price, optimal profit if unit sales decrease by 35% rather than 30%, (b) the reason whether optimal price from requirement 5a is higher or lower than the answer of 4a, (c) the reason for the recommendation of a price of $ 20 or implementing the optimal price from requirement 5a if a 20 % increase in price causes decrease in unit sales by 35% instead of 30%.
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- Please solve this Question No. 3 CVP – Applied: Revising Sales IncentivesData concerning Wislocki Corporation's single product appear below: Per Unit Percent of SalesSelling price$ 180 100 %Variable expenses45 25 %Contribution margin$ 135 75 % Fixed expenses are $1,048,000 per month. The company is currently selling 9400 units per month.The marketing manager would like to introduce sales commissions as an incentive for the sales staff. Themarketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would acceptan overall decrease in their salaries of $106,000 per month. The marketing manager predicts thatintroducing this sales incentive would increase monthly sales by 440 units. Required:What should be the overall effect on the company's monthly net operating income of this change?arrow_forwardView Policies Current Attempt in Progress Sheridan Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $210. Q-Drive Plus has a unit variable cost of $100 and a selling price of $180. The weighted-average unit contribution margin for Sheridan is O $87. O $105. O $210. O $83. Save for Later Attempts: 0 of 1 used Submit Answerarrow_forwardPROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Blujets Blupens P20 Selling prices Variable costs P40 8 24 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 4. If the sales mix was to change to 2 units of blujets to 1 unit of Blupen, would this have any effect on the breakeven sales? If so, what would be the new breakeven sales? 5. Assuming that the sales volume would remain at P1 million, what net income would be generated using the sales mix in number (4) above? 6. What sales revenue would be required if the firm wishes to generate a net income of P328,900 if the original mix of 3:1 prevailed?arrow_forward
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- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
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