Forrester Company is considering buying new equipment that would decrease monthly fixed costs from $360,000 to $360,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $1,200,000 and current break-even units are 12,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be:
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- E4 Location Breakeven Analysis (also known as cost-volume analysis) is a technique used to make an economic comparison of location alternatives. The fixed and variable costs of three potential locations are listed below: LOCATION FIXDED COST PER ANNUM VARIABLE COST PER UNIT A 40 000 80 B 70 000 65 C 120 000 3 The expected selling price of the product is R 150.00. The company wishes to find the most economical location for an expected volume of 2500 units per year. Plot the costs for each location, with costs on the vertical axis and annual volume on the horizontal axis and identify the location that has the lowest total cost for the expected production volume.Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
- Brad Co. has introduced a new product in 2021. The following information relates to this new product: Selling Price Variable Manufacturing Costs Variable Selling Costs Fixed Manufacturing Costs Fixed Selling Costs $175 $50 $20 $114,800 $71,694 $136,667 $242,500 $82,000 $63,500 The owner has asked you to calculate what the breakeven value of sales would be in dollars?Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs: Year Miles Operating Costs 2012 556,000 $182,000 2013 684,000 214,000 Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.) Total annual costs = $0 +$ 0A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $170000 $170000 Variable costs 62000 72000 Fixed costs 30000 30000 Which of the following are relevant in choosing between the alternatives?
- Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 439.00 per unit Variable costs 199.00 per unit Fixed costs 687,000 per year Assume that the projected number of units sold for the year is 4,200. Consider requirements (b), (c), and (d) independently of each other. Required: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Groove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.sales price 443.00 per unit.variable cost 203.00 per unit.fixed costs 715,000assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other. [a] What will the operating profit be? [b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent? [c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty? [d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year Kindly solve b c and dGrove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 450.00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the projected number of units sold for the year is 4,750. Consider requirements (b), (c), and (d) independently of each other. What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?
- Q5: Al-Amir Dairy Factory intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The following table presents fixed and variable costs for each proposal. proposal A B Variable cost $ 20 $ 10 Fixed cost $50,000 $80,000 2. Graph to illustrate crossover point between proposal A and proposal B 3. What is the crossover point in units for the two options? 4. If the expected demand is 3000 units which one of two vendors is the best?If Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=70000 and MS (%)=12.15 b. MS=100000 and MS (%)=15 c. None of the options d. MS=50000 and MS (%)=11.11Prepare and present a computation which illustrates what price should be selected in order to maximize profits when The company is considering the launch of a new product, component TDX 489 with the following information: Standard cost per box Variable cost 6,20 fixed cost 1,60 Total 7,80 Market research forecast of demand Selling price 13 12 11 10 9 Demand box 5000 6000 7200 11200 13400 The company only has enough production capacity to make 7000 boxes. However, it would be possible to purchase product TDX 489 from a subcontractor at £7.75 per box for orders up to 5000 boxes and £7 per box if the orders exceed 5000 boxes.