Reference no: EM131794248

Houston based advanced electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets. Sales $3,360,000, Variable cost 840,000, fixed costs 2,280,000. Management is considering relocating facilities to Mexico to reduce cost. Variable cost are expected to average $18 per set, annual fixed cost are anticipated to be $1,984,000. in the following requirements ignore income tax. Calculate the company current income and determine the level of dollar sales needed to double that figure assuming that manufacturing operations remain in the united states. Determine the break even point in speaker sets if operations are shifted to Mexico. Assume management desires to achieve the Mexican break even point however operations will remain in the United States. if a variable cost remain constant what must management do to fixed cost? By how much must fixed cost change? If fixed cost remain constant what must management do to the variable cost per unit? By how much must unit variable cost change?