What should your selling price be per unit

Assignment Help Managerial Accounting
Reference no: EM132926497

Question - Selling price is $50/unit, VC are $36/unit, Fixed costs are $280,000, current net income is $140,000. You are thinking about starting an advertising campaign that will cost and extra $40,000 and instead of leaving the selling price the same, you have decided to increase the price. What should your selling price be per unit if you will sell the same number of units as you are currently selling and you want net income to be $160,000?

Reference no: EM132926497

Questions Cloud

How much is the first year depreciation expense : How much is the first year's depreciation expense if the company uses the straiqht-line depreciation method
What are the proposed course of action : An economic recession occurred in the country where the organization operates, which created financial difficulties for the organization.
Manitoba workers compensation : Imagine that you are a truck driver and an accident on the road has left you with two broken legs and a head concussion.
Discuss a current business process in a specific industry : Discuss a current business process in a specific industry. Note the following:-The current business process itself.-The industry the business process is utilize
What should your selling price be per unit : What should your selling price be per unit if you will sell the same number of units as you are currently selling and you want net income to be $160,000
What is meant by workplace etiquette : What is meant by workplace etiquette and what are some acceptable behaviors?
Explain a new technology that the business should deploy : Explain a new technology that the business should deploy. Be specific, don't only note the type of technology but the specific instance of technology.
How can use the chain of custody to preserve evidence : How can use the chain of custody to preserve evidence. When investigating an alibi, the key things you need to focus on are the time and location of the user.
Prepare the entry to record the disposal of the machine : Diaz Company owns a machine that cost $125,800 and has accumulated depreciation of $94,800. Prepare the entry to record the disposal of the machine

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the overall amount in gain or loss

Determine the overall amount in (N$) gain or loss for the period.The cost accountant has estimated that there should be a normal spoilage of 5.25%

  Journalize the entry to record the factory labor costs

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. Journalize entry to record factory labor costs

  Determine the manufacturing lead time

Determine the manufacturing cycle efficiency (MCE) for each layout (i.e., for each of the two decision alternatives). Determine the manufacturing lead time

  Explain income between absorption costing and variable cost

Reconcile/explain the income between absorption costing and variable costing. During its second month of operations, Texas Corporation produced 300 units

  Explain why the firm can maximize the profits by employing

The firm can maximize its profits by employing the factors in optimal combinations at which the cost of production will be minimum. Explain.

  Identify the risks that are present in the case

Identify the risks that are present in this case. For each risk, recommend an internal control procedure to mitigate this problem.

  Prepare the companys production budget for third quarter

Prepare the companys production budget for the third quarter of this year (the months of July, August and September) in good form. Include a column for each month and a total column for the entire quarter.

  Compute what were equivalent units for conversion costs

50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

  Find how much amount of over- or underapplied overhead

Find how much is the amount of over- or underapplied overhead? During 2019, Vaughn Manufacturing expected Job no. 59 to cost $300000

  How many lbs of material should be purchased during May

Production of Product YZ has been budgeted at 200,000 units for May. How many lbs. of material should be purchased during May

  What is internal rate of return of neptune ltd investment

The company's required rate of return for new projects is 18%. Ignore income taxes. What is the internal rate of return of the Neptune Ltd. investment?

  Compute the net incremental cost or savings of buying

If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying.

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!

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