Reference no: EM132546690
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?
|
What is the amount the company should report
: The company's net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report
|
|
Discuss elements of strategic management
: Discuss the elements of strategic management and explain why it is crucial to an organization's survival.
|
|
Identify the highest break-even point
: An investor purchases 100 shares of stock at a price of $54.30. The investor writes 4 call options on the stock.
|
|
How would accounting equation for the company be impacted
: Depreciation of $200,000 had been recognized against the equipment. How would the accounting equation for the company be impacted
|
|
Find what will break-even point be if the price is changed
: 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?
|
|
Cultural differences between europe and china
: Valerie Hoeks explains that one of the cultural differences between Europe and China is the importance that is given to relationships.
|
|
Determine the firm cost of debt and cost of equity
: Suppose Tom O'Bedlam, president of Bedlam Products, Inc., has hired you to determine the firm's cost of debt and cost of equit y capital.
|
|
What entry would Company A make on July
: Company A owns properties that it leases for use as plant and office space. What entry would Company A make on July
|
|
How to compute the drying department cost of units transfer
: How to Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March.
|