Reference no: EM132913387
Question - Bahrain company manufactures toys, which it sells to retailers. Its production department has suggested a new product, that it believes will have good sales. Expected variable costs per unit are as follows:
Cost of Direct Materials $5.25
Cost of Direct labor $2.63
Cost of Supplies-Plant $0.42
Cost of Selling costs $1.1
Other Costs $2.6
The following are fixed costs: depreciation, $28,000; promotion $30,000; and other, $3,100. The expected selling price is $25 per unit and sales volume in units is 7000 units.
Required -
1- Compute
a- The number of units the company must sell to break even. What does this number mean?
b- The margin of safety in dollars. What is the meaning of your answer?
2- Using the same data, find the number of units that must be sold to earn a profit of $80,000 if promotion costs increase by $4,500.
3- Using the original data and sales of 25,000 units, compute the selling price to earn a profit of $150,000.
4- If all fixed costs increased by 20% and management wanted to maintain the original break-even point in units, find the new selling price per unit assuming no change on the variable cost per unit.
5- According to the vice president of marketing, if the price per unit is reduced and promotion costs is increased, the best annual sales estimate is 35,000 units. How much more can be spent on fixed promotion costs if the selling price is reduced to $18.00 per unit, the variable costs cannot be reduced, and the targeted profit for sales of 35,000 units is $140,000?
Creating security policy framework
: When creating a security policy framework, it's important to align business objectives with the correct framework.
|
Non-Western and European painting
: Compare and contrast non-Western and European painting. For example, explain the attitude of traditional Chinese painters towards space, the picture surface,
|
Who can be trusted with responsibility and sensitive issues
: Who is straightforward and won't be afraid to point out problems, admit their own mistakes, who can be trusted with responsibility and sensitive issues
|
Western European culture
: In our study of art history thus far, how do you feel non-Western art differs from art created in Western European culture?
|
Find the number of units that must be sold to earn a profit
: Using the same data, find the number of units that must be sold to earn a profit of $80,000 if promotion costs increase by $4,500
|
What is the balance of direct origination cost on december
: At what amount should the loan receivable be reported in the financial statements on December 31, 2020? What is balance of direct origination cost on December
|
Develop a brief whs policy for a laundrette
: Develop a brief WHS policy for a laundrette that includes and describes - An outline of the relevant WHS legislation, regulations and codes of practice in NSW
|
Explain how assessment is cyclical process
: Explain how assessment is a cyclical process. describe one summative assessment you might design for the stated learning outcome or goal.
|
How much should the preferred stock be worth
: If a Belmonte Company preferred stock has a residual value of $ 5, a dividend rate of 1.25%, How much should this preferred stock be worth?
|