Solution-Compute what will the new break-even point be

Compute what will the new break-even point be

Assignment Help Managerial Accounting

Reference no: EM132556852

Lucid Images Ltd manufactures premium high definition televisions. The firm's fixed costs are $4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. The company sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes)

Required: Treat each of the requirements as independent situations:

Question a) Calculate the break-even point in units.

Question b) What will the new break-even point be if fixed costs increase by 10 per cent?

Question c) What was the company's net profit for the previous year?

Question d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?

Reference no: EM132556852

Questions Cloud

What are the three cost reduction method : Can you discuss the life-cycle cost management and the role of target costing? What are the three cost reduction methods? Example.

Calculate the unit product costs of alt : Assuming the company uses activity-based costing to apply manufacturing overheads to production, calculate the unit product costs of ALT500

What is the risk or danger of the new office admin person : What is the risk/danger of the new office admin person not entering the copies made in the Delayed Charges

Explain the main stages of a digital forensic investigation : Based on your findings, does the evidence support or refute the case hypothesis? Why? Back up your answer with demonstrable reasons and evidence

Compute what will the new break-even point be : Compute What will the new break-even point be if fixed costs increase by 10 per cent? What was the company's net profit for the previous year?

Calculate using at least 4 decimal points : On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual

Digging deep company common stock : Digging Deep Company's common stock is currently selling for $166.14 per share. Next year, the company dividend

What will the relevant cost of chemical y be : If the order is accepted, what will the relevant cost of chemical Y be? Discuss Current stock of chemical Y of 8 000 kg at $16.20 per kg.

Relation to business growth market capitalization : What role does business-level strategy play in relation to business growth market capitalization?

User Account

All Pages

Compute what will the new break-even point be

Reference no: EM132556852

Reference no: EM132556852

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT