User Account

All Pages

What is the current break-even point in units

Assignment Help Accounting Basics
Reference no: EM131810830

Question - The manager of Calypso, Inc. is considering raising its current price of $35 per unit by 10%. If she does so, she estimates that demand will decrease by 20,000 units per month. Calypso currently sells 50,600 units per month, each of which costs $21 in variable costs. Fixed costs are $185,000.

a. What is the current break-even point in units?

b. If the manager raises the price, what will profit be?

c. If the manager raises the price, what will be the new break-even point in units?

d. Assume the manager does not know how much demand will drop if the price increases. By how much would demand have to drop before the manager would not want to implement the price increase?

Reference no: EM131810830

Questions Cloud

Annual loss of population and property values : Ruralville is suffering a 1% annual loss of population and property values. Even so, Ruralville must maintain its tax collections at a constant value
Record the issuance of bonds and warrants : Mickey Corp. issued 3,000 $1000 bonds at 105. Use the proportionate method to record the issuance of bonds and warrants
Compare the expected pressure drop in the line : An 8 GPM flow of petroleum oil is being delivered through a 0.5- in. hose to a hydraulic motor. The hose length is 16 ft, and no elbows or other fittings.
Before-tax rate of return : After taking an 8% inflation rate into account, what was his before-tax rate of return?
What is the current break-even point in units : The manager of Calypso, Inc. is considering raising its current price of $35 per unit by 10%. What is the current break-even point in units
Purchasing power of dollars : Express the answer to part (a) in terms of the purchasing power of dollars from 50 years ago.
Reviewed journal articles from the csu online library : Reviewed journal articles from the CSU online library - on the importance of ethical decision making for the environment and the development of a safety.
Calculate the present worth of the gifts : If general price inflation, as well as tuition price inflation, is expected to average 5% per year for those 8 years, calculate the present worth of the gifts.
Prepare the journal entry to record the redemption : On January 2, 2012, Novak Corporation issued $1,050,000 of 10% bonds at 97 due December 31, 2021. Prepare the journal entry to record the redemption

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd