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solmaris [256]
3 years ago
10

The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost a

nd revenue data for the F-27 fan are as follows: Annual sales 4,000 units Unit selling price $ 58 Unit variable costs: Production $ 34 Selling $ 4 Avoidable fixed costs per year: Production $20,000 Selling $30,000 Allocated common fixed costs per year $55,000 If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. At what selling price would the new product be just breaking even? Multiple Choice $52.25 per unit $50.50 per unit $55.75 per unit $49.00 per unit
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

$52.25 per unit

Explanation:

The computation of the selling price is shown below:

= (Unit production variable cost + unit selling variable cost) + {(Production fixed cost + selling fixed cost + Contribution margin) ÷ (annual sales units)}

= $34 + $4 + {($20,000+ $30,000 + $7,000) ÷ (4,000 units)}

= $38 + $14.25

= $52.25

We simply add the variable cost, contribution margin, and the fixed cost

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Tyson is "likely to score high on emotional intelligence".

<u>Explanation:</u>

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5 0
3 years ago
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs
Anna11 [10]

Answer:

a. 80,000 units

b. 95,000 units

Explanation:

The computation is shown below:

a.The anticipated break-even sales (units) is

As we know that

Break even point in units   = Total fixed cost ÷ Contribution margin per unit

= $27,600,000 ÷  $345    

= 80,000 units

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $1,150 - $805    

= $345

b. The units for realize operating income is

Unit sales for target profit   = (Fixed expense + Target profit) ÷ Contribution margin per unit

= ($27,600,000 + $5,175,000) ÷ $345    

= $32,775,000 ÷ $345    

= 95,000 units

3 0
3 years ago
Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total cost function MC  4q firm’s marginal cost
hjlf

Answer:

Explanation:

find the attached solution below

5 0
3 years ago
Which of the following statements about franchising is not true?
Natali [406]
The franchaiser may supply financing
3 0
3 years ago
How many calories per day would be need to allow a one pound increase in lean body weight per week during a resistance training
kari74 [83]
In order to add one pound a week, you need to approximately consume 500 more calories per day.
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8 0
3 years ago
Read 2 more answers
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