User Account

All Pages

What would be the break-even point in unit sales

Assignment Help Accounting Basics
Reference no: EM133167346

Question - Minden Company introduced a new product last year for which it is trying to ?nd an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $T0 per unit, and variable expenses are $40 per unit. Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price} is 15,000 units.

Required -

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits}?

Reference no: EM133167346

Questions Cloud

Identify some dilemmas she faces in preparing this budget : Submit a budget for Stark to submit to headquarters. Identify some dilemmas she faces in preparing this budget
Causes and consequences of political behavior : We are immersed and surrounded by these principles every day of our lives. What are the causes and consequences of political behavior?
Development plan and presentation : How is corporate entrepreneurship defined in your company, if it is defined at all? How long has the firm been engaged in efforts to become more entrepreneurial
Performance for the job of warehouse worker : Based on the job description, which of these personality traits would likely be the best predictor of good job performance for the job of warehouse worker?
What would be the break-even point in unit sales : What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above
Logical interpretation of the rationale behind the merger : The response provides a clear and logical interpretation of the rationale behind the merger, based on what has been said publicly but also
Understanding of human behavior theories : Explore how an understanding of human behavior theories would assist their employer organization in achieving strategic goals.
People issues in international business : With reference to this topic, discuss cultural orientations of the (foreign) country you are currently working in, or of a country in which your organization (o
Develop a plan for the development of and long-term support : Develop a plan for the development of and long-term support of a culture of innovation in the organisation from which the case study is drawn

Reviews

Write a Review

Accounting Basics Questions & Answers

  Examine two benefits of using sensitivity analysis

Examine two benefits of using sensitivity analysis in evaluating the projects for your selected company. Suggest how this approach can provide

  What is the yield that gary would earn by selling the bonds

Gary King bought 10-year bonds issued by Harvest Foods five years ago for $934.35. What is the yield that Gary would earn by selling the bonds

  Explain how the program would function when implemented

Demonstrate the need for your proposal to be adopted. Explain how the program would function when implemented. Estimate the first-year cost of adopting the proposal. Note only three subtotals (personnel, operating, and capital outlay) and remember ..

  Prepare the journal entry to record the purchase

Garcia Corporation purchased a truck by issuing an $249,600, 4-year, Prepare the journal entry to record the purchase of this truck

  Calculate the return on total assets

A company reports the following income statement and balance sheet information for the current year: Net income $475,940. Calculate the return on total assets

  Discuss the importance of each component of this code

Discuss the importance of each component of this code in terms of ethics and its relation to the concept of corporate governance.

  The worldwide credit card inc uses standards to control the

the worldwide credit card inc. uses standards to control the labor time involved in opening mail from card holders and

  What is the contribution margin ratio for bluewood corp

What is the contribution margin ratio? The information is available for Bluewood Corporation for a sales volume of 500 stereo speakers for the past month

  Identify potential threat to independence safeguards

ACCT3000 AUDITING ASSIGNMENT. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified

  Stahl consulting started the year with total assets of

stahl consulting started the year with total assets of 20000 and total liabilities of 5000. during the year the

  What was the amount of those contributions

Assuming cash contributions were made at the end of the year, what was the amount of those contributions?

  What is the potential financial impact of the project

Whom should the project sponsor be? Why? What skills and experience are likely needed by the project manager for each phase in the project life cycle

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