Solution-By what amount is the product more profitable

By what amount is the product more profitable

Assignment Help Accounting Basics

Reference no: EM132514537

Question - Acorn Company is considering development of two products. Alpha and Beta. Regardless of which product is introduced, the selling price is $50. Manufacturing cost:

	Alpha	Beta
Annual Fixed Costs	$200,000	$300,000
Variable cost per unit	$30	$20

Required -

1. Which of the two products will be more profitable at a sales level of 20,000 units?

2. Refer to the previous question. By what amount is the product (Alpha or beta) more profitable?

3. At what volume, (number of units) will the profit for the two products be the same?

Reference no: EM132514537

Questions Cloud

Enhancee-business performance using a real-life example : Explain how telecommunications tools, Internet connection and wireless technologycan enhancee-business performance usinga real-life example of a firm

What would Yoseffs cost of goods sold : Yoseff Company uses the LIFO method of inventory valuation. What would Yoseff's cost of goods sold in Year 5 have been if Yoseff had used FIFO

What were the individual capital balances : The four original partners shared profits and losses equally. After Paul made his investment, what were the individual capital balances

Prepare the January journal entry to record the formation : Prepare the January 1, 2020 journal entry to record the formation of the partnership assuming the goodwill method is used

By what amount is the product more profitable : Acorn Company is considering development of two products. Refer to the previous question. By what amount is the product (Alpha or beta) more profitable

Calculate the amount stock that should be carried : The dress department has average weekly sales of $45,000. Using the weeks of supply method calculate the amount stock that should be carried in the department

Calculate the October BOM stock needed : The basics department has Fall sales of $59,000 and a planned seasonal turnover of 2.0. Calculate the October BOM stock needed using the basic stock method

Calculate the planned purchases at retail and cost for May : The children's department has an initial markup of 46%. Planned sales for May are $345,000, Calculate the planned purchases at retail and cost for May

What is the average stock and average monthly sales : What is the average stock and average monthly sales for a retailer with seasonal sales of $45,900,000 and a seasonal stock turn of 2.9

User Account

All Pages

By what amount is the product more profitable

Reference no: EM132514537

Reference no: EM132514537

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT