Calculate the selling price

Assignment Help Accounting Basics
Reference no: EM132549574

Question - Pineapple Corp. has annual revenues of $600,000, fixed expenses of $200,000, and an average contribution margin ratio of 30%.

(a) Management is considering adding a new product to the company's product line. The new item will have $14.00 of variable costs per unit. Calculate the selling price that will be required for this product to maintain the 30% average contribution margin ratio on current sales.

(b) If the new product adds an additional $63,000 to Pineapple's fixed expenses, how many units of the new product must be sold at the price calculated in part (a) in order to break even on the new product?

(c) If 25,000 units of the new product could be sold at a price of $18.00 per unit, and the company's other business did not change, calculate Pineapple's total operating income and average contribution margin ratio.

Reference no: EM132549574

Questions Cloud

Make your cover letter stronger : You will develop a cover letter, reflect on your most relevant skills, and assess what action steps you can take to make your cover letter stronger.
What has an unfavorable direct-material quantity variance : If a company has an unfavorable direct-material quantity variance, then? he direct-labor efficiency variance is unfavorable. the total direct-material variance
Should your mourners wear black : How long should your loved ones wait before they go to the movies or otherwise have fun and Should your mourners wear black? And for how long? Why or why not
What is donalds rental income : Donald owns a residential rental property located at 1602 Gaskin Road., Your City, Your State - Your Zip, What is Donalds rental income
Calculate the selling price : Calculate the selling price that will be required for this product to maintain the 30% average contribution margin ratio on current sales
Classify the costs for a supermarket into purchasing : Classify the costs for a supermarket into purchasing, production/sales, marketing, distribution, customer support, receiving store man's wages
Innovative product to a market : What is wrong with introducing an innovative product to a market that was not demanding it?
What measures as bases for allocating overhead to output : ABC systems are characterized by their use of which of the measures as bases for allocating overhead to output,UNIT LEVEL DRIVERS
Various phases of business research project : Significant aspect of the learning journal will be your reflections on how well your team co-operated in the various phases of the Business Research Project

Reviews

Write a Review

Accounting Basics Questions & Answers

  While doing an audit you discover inconsistencies in the

while doing an audit you discover inconsistencies in the companys expenses. address the following middot why might a

  What are the combined total department costs

Premium Corporation has two service departments whose direct department costs are $75,000 and $10,000, respectively, and two producing departments whose direct department costs are $60,000 and $250,000, respectively. What are the combined total de..

  Record the purchase of vehicles

Record the purchase of vehicles in the amount of $100,000 in the General Fund and governmental activities general journals

  What is michael tax liability for health insurance benfit

Michael's employer provides a health insurance benefit with a market value of $6,000. What is Michael's tax liability for the health insurance benefit

  Up to how much would the company be willing to pay for one

nbspcrane company makes four products in a single facility. data concerning these products appear belowproductnbspnbsp

  How the business model would affect the design of a new ais

Acc564-If the business was selecting a new AIS, examine how the business model would affect the design of a new AIS.

  Compute net income for the first year for Alpaca Corporation

Alpaca Corporation had revenues of $210,000 in its first year of operations. The company has not collected on $19,500 of its sales and still owes $26,800.

  Smoky mountain corporation makes two types of hiking

smoky mountain corporation makes two types of hiking boots-xtreme and the pathfinder. data concerning these two

  Who were the state governor of your group project cafr

Who were the State Governor, State Treasurer and State Controller of your group project's CAFR? Your group project's CAFR fiscal year ended at what date?

  Alpha centuri corporation has retained earnings

Alpha Centuri Corporation has retained earnings of $3,100,000 on January 1, 2010. During the year, Alpha Centuri earned $1,200,000 of net income.

  Record the transactions in the appropriate general ledger

Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense

  Advantages of recording system in small business

Why the small business need recording system in their business. What are the advantages of recording system in small business

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd