Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018...

Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018 were $3 per unit, and 30,000 units were produced that year. Your company uses cost-based pricing and has a profit margin of $3 per unit. In 2019, production increased and your team had more experience—variable costs went down to $2 per unit because of your team’s higher skill and 65,000 units were produced that year. What is the change in selling price from 2018 to 2019?

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs....

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 104,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

Assume Phony Company has variable costs per unit of $23, fixed costs of $600,000, and a...

Assume Phony Company has variable costs per unit of $23, fixed costs of $600,000, and a break-even point in units of 60,000 units. If the sales price per unit decreases by $4 and the variable cost per unit decreases by $4, what would happen to the break-even point? A. Break-even point stays the same. B. Break-even point increases. C. Break-even point in dollars decreases. D. Break-even point in dollars decreases and break-even point in units stays the same.

1) Suppose that a company has fixed costs of $15 per unit and variable costs $11...

1) Suppose that a company has fixed costs of $15 per unit and variable costs $11 per unit when 15,500 units are produced. What are the fixed costs per unit when 11,000 units are produced? 2)Total costs for ABC Distributing are $240,000 when the activity level is 9,000 units. If variable costs are $3.0 per unit, what are their fixed costs? 3)Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $750,000 in...

Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...

Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per unit Variable Cost per unit Contribution Margin per unit X $1,248 $468 $780 Y 473 253 220 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number. units...

Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...

Suppose a company has fixed costs of $5,500 and variable costs per unit of 7/8x + 1,040...

Suppose a company has fixed costs of $5,500 and variable costs per unit of 7/8x + 1,040 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1,200 − 1/8 x dollars per unit. (a) Form the cost function and revenue function (in dollars). C(x) = R(x) = Find the break-even points. x = 50,110 (b) Find the vertex of the revenue function. (x, y) = Identify the maximum revenue....

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even...

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even point of 60,000 units. What will be the new break-even point in units if variable costs decrease by $3 per unit and fixed costs increase by $100,000? 93,333 units 33,333 units 50,000 units 200,000 units At the break-even point: Sales would be equal to total costs. Contribution margin would be equal to total fixed costs. Sales would be equal to fixed costs. Both sales...

Fixed costs are P10 per unit and variable costs are P25 per unit. Production was 13,000...

Fixed costs are P10 per unit and variable costs are P25 per unit. Production was 13,000 units, while sales were 12,000 units. Determine (a) whether variable cost income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption costing income from operations.

Suppose a company has fixed costs of $47,600 and variable cost per unit of 4/9x +...

Suppose a company has fixed costs of $47,600 and variable cost per unit of 4/9x + 333 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1767 −5/9x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and...

Suppose a company has fixed costs of $48,000 and variable cost per unit of 4 9...

Suppose a company has fixed costs of $48,000 and variable cost per unit of 4 9 x + 333 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2357 − 5 9 x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x)...

Subjects