User Account

All Pages

What will be herzogs new breakeven point in units

Assignment Help Financial Accounting
Reference no: EM13516899

Herzog Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year.

XL-709

CD-918

Sales price

$10.00

$25.00

Variable cost

6.00

17.00

Sales volume

40,000 units

60,000 units

Required

  1. How many units of each product must Herzog Industries sell in order to break even?
  2. Herzog"s vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Herzog"s new breakeven point in units?
  3. Returning to the original information, Herzog"s vice president of marketing believes that spending $60,000 on a new advertising campaign will increase sales of component CD-918 to 80,000 units, without affecting the sales of product XL-709. How many units of each product must Herzog sell to break even under this new scenario?
  4. The market changes referred to in part (b) indicate additional overall demand for component XL-709. Herzog"s vice president of marketing believes that if the company spends $60,000 to advertise component XL-709 rather than CD-918, as planned in part (c), the company will be able to sell a total of 50,000 units of XL-709 at the new price of $14.00. If the company must choose to advertise only one component, which component should receive the additional $60,000 in advertising?

Reference no: EM13516899

Questions Cloud

How fast are these protons moving : A cyclotron particle accelerator (sometimes called an "atom smasher" in the popular press) is a device for accelerating charged particles, How fast are these protons moving when they hit the tumor
Resurgence of islamic fundamentalism : There has been a resurgence of Islamic Fundamentalism (or revivalism) in Afghanistan, Iran and other parts of the Muslim world. Explain what you feel is the cause of this resurgence and whether you believe liberal democracy requires secularization of..
Explain a weak acid was dissolved in enough water : A 10 gram sample of the ionic compound NaA, where A is the anion of a weak acid was dissolved in enough water to make 100 ml of solution and was then titrated with 0.1 M HCL
How many equally spaced turns must it have : How many equally spaced turns must it have so that it will produce a magnetic field of 3.75mT at points within the coils 14.0cm from its center
What will be herzogs new breakeven point in units : Herzogs vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Herzogs new breakeven point in units?
Prepare a contribution format income statement : Prepare a contribution format income statement for the Robinson Company.
Describe the prevailing arguments : Describe the prevailing arguments of what constitutes a "just war," and assess the justice of the Vietnam War in that context. Speculate on how the world would be different today if the U.S. had not become involved in Vietnam.
Identify each expense as fixed-variable,or mixed : Identify each expense as fixed, variable, or mixed and prepare a contribution margin income statement based on a volume of 5,000 windows.
What is the unknown batterys voltage : When a 9.0 V battery is connected to a capacitor, it puts 8.00e-4 C of charge on the capacitor. What is the unknown battery's voltage

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are two groups of financial statements mandated by gasb

What are two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced?

  What is the amount of depreciation expense

what is the amount of depreciation expense for each of the five using the straight line method and what is the amount of depreciation expense for each of the five years using the double declining balance method?

  Given base index and index at delivery estimation of

given base index and index at delivery estimation of adjusted contract price.given the following contract information

  Evaluate the pete''s gross income for calendar year

Evaluate the Pete's gross income for calendar year 2013?

  What was the actual overhead cost

Reeves Company uses a predetermined overhead rate of $6.00 per machine hour. If the predetermined overhead rate was $6 per machine hour, overhead was underapplied by $40,000, and actual machine hours were 70,000; what was the actual overhead cost?

  Prepare the stockholders equity portion

Prepare the Stockholders Equity Portion of the Balance Sheet on January 1, 2012 - sole proprietor owner's equity accounts must be closed and the equity must now reflect a corporate stockholders' equity account.

  What is sales level in dollars required to equal income

If the company spends the additional $10,000 for advertising in 2011, what is the sales level in dollars required to equal 2010 operating income?

  What is the current share price

Taylor Corp. is growing quickly. Dividends are expected to grow at a 31 percent rate for the next three years, with the growth rate falling off to a constant 6.6 percent thereafter.

  Analyzes the financial strengths and weaknesses of company

Calculation of at least five significant investor ratios for each of the five years analyzed. Analyzes the financial strengths and weaknesses of the company examined.

  Calculating additional finance requirements

Calculating Additional Finance Requirements and Average Collection Period and what amount will this increase in the average collection period increase the financing needed by the company over the next year?

  Automotive service franchises in a metropolitan area

outgrown her father's accountant and requires having new ideas to help her save tax dollars so she will reinvest more money in the business. prepare and expects to add six more locations in each of the next two years.

  What basis of accounting do enterprise

What basis of accounting do enterprise and internal service funds use and Which of the following is  not  a GASB-required statement for proprietary fun

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