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2 years ago

Flying Cloud Co. has the following operating data for its manufacturing operations:

Business

1 answer:

rjkz [21]2 years ago

6 0

Answer:

a) increased by 368 units

Explanation:

The calculation of the next break even point should be

Existing break-even point for Flying Cloud Co. is

= Fixed Cost ÷ Contribution Margin Per Unit

= Fixed Cost ÷ Sales Price Per Unit - Variable Cost per Unit

= $980,000 ÷ ( $350 - $100)

= 3,920 Units

Now

Revised Variable cost = $100 × 110%

= $110

And,

Revised Fixed cost = $980,000 × 105%

= $1,029,000

So,

Revised break-even point for Flying Cloud Co. is

= Fixed Cost ÷ ( Contribution Margin Per Unit

= Fixed Cost ÷ ( Sales Price Per Unit - Variable Cost per Unit

= $1,029,000 ÷ ( ( $350 -$110)

= 4,287.5

= 4,288 units

So,

Increase = 4,288 Units - 3920 Units

= 368 Units Increase

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Marjorie's Mugs sold 300 mugs last year for $20 each. Variable costs were $7 per mug and total fixed costs were $1,700. Marjorie

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<h3>What is Variable cost?</h3>

Variable costs are expenses that alter as the volume of a good or service a company produces fluctuates. Marginal costs multiplied by the number of units produced make up variable costs. They can be regarded as typical expenses as well. Total cost is divided into two parts: fixed costs and variable costs.

<h3>What is fixed cost?</h3>

Fixed costs, also known as indirect costs or overhead costs, are expenses incurred by a firm that are independent of the volume of goods or services the business produces. They typically have a periodic nature, such monthly rent or interest payments. These expenses frequently also involve capital costs.

<h3>According to the given information:</h3>

Total mugs sold = 300

mugs sold at = 20

variable cost = 7

total fixed cost = 1700

find the profit:

profit = (300*(20-7) - 1,700)

= $2,200

The total profit Marjorie's mugs are = 2200

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1 year ago

Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good: a) se

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