The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim...

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $88.50. The variable cost per unit is $27.25, Poseidon Swim has average fixed costs per year of $5,216. Assume that current level of sales is 305 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by-3.9 percent? (You should calculate the degree of operating leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimal places

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 7 months ago

10) Benny's Custom Chairs produces inexpensive leather chairs. The average selling price for one of the...

10) Benny's Custom Chairs produces inexpensive leather chairs. The average selling price for one of the chairs is $500. The variable cost per chair is $250. Benny's has average fixed costs per year of $500,000. What is the break-even point in units? What is the break-even point in dollar sales? What would be the operating profit or loss associated with the production and sale of (1) 2,000 chairs, (2) 4,000 chairs?

A company that produces computers claims that that the average life of one of their computers...

A company that produces computers claims that that the average life of one of their computers is 8 years. A sample of 12 computers shows a sample mean life of 7.8 years, with a population standard deviation of 0.2 years. Does the data suggest that the average life of one of the computers is not 8 years at 0.05 level significance? Assume computer lifetimes are normally distributed. 1. Give null and alternate hypothesis 2. Give test statistic and P value,...

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105.

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to: A) $525,000 B) S315,000 C) $472,500 D) $787,500

The Grand Company produces three products with the followings costs & selling price: \ Product Name...

The Grand Company produces three products with the followings costs & selling price: \ Product Name Large Medium Small Selling Price per unit $15 20 20 Variable cost per unit 8 10 12 Machine Hours per unit 3.5 2 2.5 Grand has a limit of 20,000 machine hours available per month. The company has a monthly fixed cost $50,000. If there is virtually unlimited demande for each of the products, what is the maximum monthly profit? If the demand for...

The Nanjing Company produces and sells 5,000 of baby carriages per year at a selling price...

The Nanjing Company produces and sells 5,000 of baby carriages per year at a selling price of $100 each. Its current production equipment was purchased two years ago for $500,000. The equipment is being depreciated on the straight-line basis with a 5-year useful life and zero salvage value. The emergence of a new technology has led Nanjing to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: Upgrade Replace One-time costs $300,000...

The variables in the file are Price -Average selling price of houses Location -A code to...

The variables in the file are Price -Average selling price of houses Location -A code to indicate the location of the house Condition -A code to indicate the physical condition of the house Bedrooms Number of bedrooms in the house Bathrooms Number of bathrooms in the house Other Rooms Number of other rooms in the house (a) Run a regression of Price on Location, Condition, Bedrooms, Bathrooms and Other Rooms. Please attach your Excel file. (b) What variables seem to...

OPERATING LEVERAGE Riyadh Company manufactures a complete line of electronics. The average selling price for the...

OPERATING LEVERAGE Riyadh Company manufactures a complete line of electronics. The average selling price for the various products is SAR 715. The associated variable cost is SAR 475 per unit. Fixed costs for the firm averay SAR 225,000 annually. a. What is the break-even point in units for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What is the degree of operating leverage (i.e., the ratio of the percent...

Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted...

Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: July August September October Budgeted unit sales 7,300 11,500 14,200 12,100 All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to: Multiple Choice $551,880 $1,131,480 $919,800 $579,600

Ng Corporation produces and sells only one product; its selling price is $100 and its variable...

Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $60 per unit. The company’s monthly fixed expense is $35,000. Required: 1. Using the equation method, determine the unit sales that are required to earn a target profit before tax of $4,000. 2. Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $5,000. 3. Using the formula method, calculate the number...

The TechMech Company produces and sells 6400 modular computer desks per year at a selling price...

The TechMech Company produces and sells 6400 modular computer desks per year at a selling price of $450 each. Its current production equipment, purchased for $1,650,000 and with a five-year useful life, is only two years old. It has a terminal disposal value of $0 and is depreciated on a straight-line basis. The equipment has a current disposal price of $500,000. However, the emergence of a new moulding technology has led TechMech to consider either upgrading or replacing the production...

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