Newton Company currently produces and sells 15,000 units of a product that has a contribution margin...

Newton Company currently produces and sells 15,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $23 per unit. Fixed costs are $38,000. The company is considering investing in new technology that would decrease the variable cost per unit to $14 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 29,000 units of product. What sales price would have to be charged to earn a $98,000 desired profit assuming the investment in technology is made?

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ekkarill92 answered 2 years ago

Barnam Company currently produces and sells 12,000 units of a product that has a contribution margin...

Barnam Company currently produces and sells 12,000 units of a product that has a contribution margin of $8 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $37,800. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $20,000. After the new investment is made, how many units must be sold...

Webster Company produces 40,000 units of product A, 30,000 units of product B, and 15,000 units...

Webster Company produces 40,000 units of product A, 30,000 units of product B, and 15,000 units of product C from the same manufacturing process at a cost of $390,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $30 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 33,000 units of A, 29,000 units...

6. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution...

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1. Leeks Company's product has a contribution margin per unit of $12.65 and a contribution margin...

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Broom Brothers produces and sells one product. The firm currently sells 10,000 units per year for...

Broom Brothers produces and sells one product. The firm currently sells 10,000 units per year for $80 per unit. Total variable costs are $60 per unit and fixed costs are $150,000. a) What is breakeven sales in units? b) What is the margin of safety in units? What’s the margin of safety in dollars? c) What is the degree of operating leverage? d) If sales increase to 15,000 units per year, profits will increase by ____%. e) How many units...

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Decaprio Inc. produces and sells a single product. The company has provided its contribution format income...

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June. Sales (5,500 units) $ 192,500 Variable expenses 82,500 Contribution margin 110,000 Fixed expenses 86,500 Net operating income $ 23,500 If the company sells 5,700 units, its net operating income should be closest to: (Do not round intermediate calculations.)

Bassman Company operates on a contribution margin of 30% and currently has fixed costs of $400,000....

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1) Broom Brothers produces and sells one product. The firm currently sells 10,000 units per year...

1) Broom Brothers produces and sells one product. The firm currently sells 10,000 units per year for $90 per unit. Direct material costs are $5 per unit. Direct labor costs are $10 per unit. Variable manufacturing cost are $15 per unit. Fixed manufacturing costs are $150,000. Variable selling costs are $15. Variable administrative costs are $5 per unit. Fixed selling costs are $50,000 a) What is breakeven sales in units? What is breakeven sales in dollars? b) What is the...

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