Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit, and fixed costs of $108,000. Knoll is considering increasing the price of its units to $108 per unit. If the price is changed, how many units will Knoll need to sell for profit to remain the same as before the price change?
Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $915 per set and…
A:
Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…
A: Markup: The markup is the difference between the selling price of a product or service and the cost…
Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The company produced and sold 14,000 units last year with sales price of $50 per unit and unit…
A: Current profit = (sales price- variable costs) x no. of units sold - fixed costs =…
Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…
A: Increment revenue arises when the product is processed further to earn additional revenue over the…
Q: Carrolton, Inc., currently sells widgets for $80 per unit. The variable cost is $30 per unit, and…
A: The change in income can be calculated by calculating the difference between original net income and…
Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…
A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: For New Equipment: Fixed costs = $150,000 Variable cost = $60 per unit Selling price = $100 per unit…
Q: Derby Phones is considering the introduction of a new model of headphones with the following price…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and…
A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…
Q: Management at the Flagstaff Company currently sells its products for $250 per unit and is…
A: Variable cost per unit = current sales price x 30% = $250 x 30% = $75 per unit Budgeted sales price…
Q: Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each.…
A: Special order are acceptable to the extent if they bring incremental profits in the company. The…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A:
Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $739 per set and…
A: Payback(PB) Period shows times in which amount invested in project will be earned back. Net Present…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: Break-even sales in units: The number of units of items that the company must sell to break even is…
Q: Larson, Inc., manufactures backpacks. Last year, it sold 87,500 of its basic model for $15 per unit.…
A: Let us consider whole market = 100% Given market is expected to increase by 15% Therefore total…
Q: McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $950 per set and have a…
A: In the given question we need to calculate the sensitivity of the NPV to changes in the price and…
Q: Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Lusk Corporation produces and sells 15,000 units of Product X each month. The selling price of…
A: Solution: Contribution margin lost if discontinued = CM per unit * units = (40-32)*15000 = 120,000
Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Walton Corporation is currently selling 104 units of its product. The company is deciding the price…
A: Lets understand the basics. When any special order sales is made which does not affect the current…
Q: Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are…
A: Contribution margin per pastry = sales price - variable costs = $3 - $0.75 = $2.25
Q: Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations…
A: Variable costs are the costs which changes with the variation in output and vice versa to this,…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A: Absolute advantage refers to an individual, company, region, or country's ability to create more of…
Q: Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit and…
A: we need to calculate the estimated revenue with the expected price and sales. For that use the…
Q: Lusk Corporation produces and sells 14700 units of Product X each month. The selling price of…
A: In this question we are required to find what is advantage or disadvantage if product X will…
Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…
A: The cost volume profit analysis can be defined as the method of analyzing the effect of variable…
Q: The Warren Watch Company sells watches for $29, fixed costs are $180,000, and variable costs are $10…
A: Calculate the gain or loss for 7,000 watches as follows: Gain or (loss) = Total contribution - Fixed…
Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…
A: Here the first step is determine the existing level of profits. Once this is done then we will have…
Q: Newman Company currently produces and sells 7,000 units of a product that has a contribution margin…
A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…
Q: Larson, Inc., manufactures backpacks. Last year, it sold 85,000 of its basic model for $25 per unit.…
A: Total market sales = Larson sales / marker share = 85000/20% = 425,000 units
Q: Riley's Rugs has a unit selling price of $120, unit variable cost of $40, and fixed costs of $35,000…
A: Contribution margin = sales - variable cost
Q: Dull Corporation produces 8,000 parts each year, which are used in the production of one of its…
A: Give, Purchase price = $28 Fixed cost if purchased from outside = $20 - ($20*1/4) Fixed cost if…
Q: A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable…
A: Information Provided: Selling price = $50 Variable cost (Chairs) = $25 Variable cost (Bar stools) =…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A: Incremental Revenue = Special order no. of units x Special order sales price per unit = 1,200 x $26…
Q: Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit…
A: Since all direct expenses have been deducted from sales, contribution seems to be the amount of…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…
A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…
Q: t it estimates will sell for $95 per unit. Annual demand is estimated to be 98,000 units. Sonora…
A: Target costing is a way of calculating a product's life-cycle cost, which should be sufficient to…
Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…
A: Price of Chair = $195 Contribution Margin Ratio = 60% Fixed cost = $80,000 Target profit = $85,000…
Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $965 per set and…
A: We are caluclating CFAT in excel
Q: Yorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville's fixed…
A: Calculation of the Incremental net income:- Incremental net income = Incremental Revenue -…
Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $790 per set and…
A: NPV is the net current worth of cash flows that are expected to occur in the future.
Q: Chile’s, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $920 per set and…
A: NPV is a techniques under Capital Budgeting which help in decision making on the basis of future…
Q: Brody Inc. is currently selling a product at P20 per piece. The income statement for the current…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit, and fixed costs of $108,000. Knoll is considering increasing the price of its units to $108 per unit. If the price is changed, how many units will Knoll need to sell for profit to remain the same as before the price change?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- Baghdad Company produces a single product. They have recently received the result of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. If they enact the 10% price increase, what will be their new break-even point in units and dollars? Their most recent CVP analysis is:Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount toKnoll, Inc. currently sells 31,000 units a month for $34 each, has variable costs of $23 per unit, and fixed costs of $120,000. Knoll is considering increasing the price of its units to $37 per unit. This will not affect costs, but demand is expected to drop 10%. Should Knoll increase the price of its product? Multiple Choice Yes, profit will increase $221,000. Yes; profit will increase $49,600. No, profit will decrease $49,600. No, profit will decrease $221,000.
- Carrolton, Inc., currently sells widgets for $80 per unit. The variable cost is $30 per unit, and total fixed costs equal $220,000 per year. Sales are currently 15,000 units annually. The company is considering a 15% drop in selling price that it believes will raise units sold by 25%. Assuming all costs stay the same, what is the impact on income if this change is made? Explain your answer.XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $65 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: а. 10,000 b. 9,000 c. None of the given answers. d. 7,500 е. 11,250Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed costs amount to $66,000. The product sells for $18 each. Thomas currently expects to make and sell 23,000 units. Management believes that if the price per unit is lowered by one dollar, the Company could sell an additional 3,000 units of product. If Thomas implements the lower price strategy, profitability will Multiple Choice O increase by $5,600. decrease by $3,000. decrease by $14,000. increase by $17,000.
- Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually. The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?XYZ company currently sells 15,000 units a month for $ 50 each , has variable costs of $ 20 per unit , and fored costs of $ 300,000 . The company is considering increasing the price of its units to $ 80 per unit . If the price is changed , how many units will the company need to sell for profit to remain the same as before the price change ? Select one . 10,000 . 7.500 9,000 d . 11.250 e None of the given answers .Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed costs amount to $66,000. The product sells for $18 each. Thomas currently expects to make and sell 23,000 units. Management has an opportunity to reduce its variable cost per unit by one dollar. If Thomas passes the savings on to its customers by lowering the sales price, the lower sales price will increase sales by 1,000 units. If management Implements the new pricing strategy, profitability will Multiple Choice increase by $8,000. decrease by $12,000. decrease by $20,000. increase by $4,000.