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stepladder [879]
3 years ago
13

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be

$80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000. If Sam makes his proposed changes, how many sales in units will he need to make to keep prices the same while earning the same profit?
Business
1 answer:
kvasek [131]3 years ago
7 0

Answer:

New units sale= 2,063 units

Explanation:

Giving the following information:

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be $80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently, Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000.

First, we need to calculate the current profit:

Sales in units= 1,500

Contribution margin= (200 - 80)*1,500= 180,000

Fixed costs= 95,000 (-)

Profit= 85,000

To calculate the units required to adapt to the new changes using the following formula:

Break-even point= (fixed costs + profit)/ contribution margin

Break-even point= (80,000 + 85,000)/ (200 - 120)

Break-even point= 2,063 units

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Jason and Mary are married taxpayers in 2019. They are both under age 65 and in good health. For 2019 they have a total of $41,0
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Answer:

a. Adjusted Gross income is calculated as;

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3 years ago
Jackson company has the following financial information for their most recent fiscal year: Revenues Cost of Sales Interest Expen
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Answer:

The calculations are shown below

Explanation:

The computations are shown below:

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Particulars Amount  

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3 years ago
The following information is for MTC Harry Company:
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Answer:

Results are below.

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<u>Now, the cost of goods manufactured:</u>

<u></u>

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Explanation:

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