Reference no: EM132573024
Question - Clifford Co. manufactures and sells adjustable windows for remodeling homes and new housing. Clifford developed its budget for the current year assuming that the windows would sell at a price of $500 each. The variable costs for each window were forecasted to be $250 and the annual fixed costs were forecasted to be $130,000. Clifford had targeted a profit of $450,000. While Clifford's sales usually increase during the second quarter, the May financial statements reported that sales were not meeting expectations. For the first five months of the year, only 400 units had been sold at the established price, with variable cost as planned, and it was clear that the target profit for the year would not be reached unless some actions were taken. Clifford's president assigned a management committee to analyze the situation and develop several alternative courses of action. The following three alternatives were presented to the president, only one of which can be selected.
Reduce the selling price by $50. The marketing department forecasts that with the lower price, 3,200 units could be sold during the remainder of the year.
Lower variable costs per unit by $30 through the use of less expensive materials. Because of the difference in materials, the selling price would have to be lowered by $40 and sales of 2,600 units for the remainder of the year are forecast.
Cut fixed costs by $15,000 and lower the selling price by 5 percent. Sales of 2,200 units would be expected for the remainder of the year.
Required -
a. If no changes are made to the selling price or cost structure, estimate the number of units that must be sold during the year to break-even.
b. If no changes are made to the selling price or cost structure, estimate the number of units that must be sold during the year to attain the target profit of $450,000.
c. Determine which of the alternatives Clifford's president should select to maximize profit.
|
Environmental pollution in uae
: Demonstrate their ability to communicate effectively in written and oral form, demonstrating the ability to create an appropriate annotated bibliography
|
|
Determining the green colorblindness
: Red If a woman who is a carrier for the red - green colorblindness allele has children with a man who has red-green colorblindness
|
|
Develop new information security policy
: If you were asked by your employer to develop a new Information Security Policy, where would you turn to find resources to build this policy?
|
|
Evaluate the potential advantages of the nn strategy
: Evaluate the potential advantages and disadvantages of the NN's strategy around the working capital and backup your answer with significant evidence
|
|
Estimate the number of units that must be sold
: If no changes are made to the selling price or cost structure, estimate the number of units that must be sold during the year to attain target profit of $45,000
|
|
Normal parents inherit haemophilia
: In one form of haemophilia, a recessive X - linked allele, Xh, increases blood clotting time. Can any of the female offspring
|
|
Define firewall security techniques
: Define a firewall. Define firewall security techniques
|
|
Haemophiliac offspring can be born to two normal parents
: In one form of haemophilia, a recessive X- linked allele, X", increases blood clotting time. Explain how haemophiliac offspring
|
|
Britain industrial revolution
: There is a moth in England called the peppered moth. Before Britain's industrial revolution, these moths were usually salt
|