Question
In: Accounting
Xi-Tech, Inc. is considering the introduction of a new music player with the following price and...
Xi-Tech, Inc. is considering the introduction of a new music player with the following price and cost characteristics: Sales price $ 125 each Variable costs 75 each Fixed costs 180,000 per year Tax Rate 25% Required: (show your work) • How many units and sales dollars must Xi-Tech sell to break even? • How many units and sales dollars must Xi-Tech sell to make an and after-tax profit of $120,000 for the year? • Prove your answer in part b by preparing a Contribution Margin Income Statement all the way through to after-tax profit.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is considering the introduction of a new model of
headphones with the following price and cost characteristics:
Sales price
$
23
per unit
Variable costs
6
per unit
Fixed costs
24,000
per month
Assume that the projected number of units sold for the month is
7,000. Consider requirements (b), (c), and
(d) independently of each other.
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if
the sales price decreases by...
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is considering the introduction of a new model of
headphones with the following price and cost characteristics:
Sales price
$
19
per unit
Variable costs
7
per unit
Fixed costs
30,000
per month
Assume that the projected number of units sold for the month is
6,000. Consider requirements (b), (c), and
(d) independently of each other.
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if
the sales price decreases by...
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is
considering the introduction of a new model of headphones with the
following price and cost characteristics:
Sales price
$
355
per unit
Variable
costs
140
per unit
Fixed costs
451,500
per month
Required:
a.
What number must Derby sell per month to break even?
Break even sales in
units
b. What number must Derby sell to make an
operating profit of $279,500 for the month?
Number of units
sold
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is
considering the introduction of a new model of headphones with the
following price and cost characteristics:
Sales price
$
17
per unit
Variable
costs
8
per unit
Fixed costs
20,000
per month
Assume that the
projected number of units sold for the month is 6,500. Consider
requirements (b), (c), and (d)
independently of each other.
Required:
a.
What will the operating profit be?
b.
What is the impact on operating profit if the sales price decreases
by...
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is considering the introduction of a new model of
headphones with the following price and cost characteristics.
Sales price
$
21
per unit
Variable costs
9
per unit
Fixed costs
26,000
per month
Assume that the projected number of units sold for the month is
6,000. Consider requirements (b), (c), and
(d) independently of each other.
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if
the sales price decreases by...
Derby Phones is considering the introduction of a new model of headphones with the following price...
Derby Phones is considering the introduction of a new model of
headphones with the following price and cost characteristics.
Sales price
$
23
per unit
Variable costs
7
per unit
Fixed costs
25,000
per month
Assume that the projected number of units sold for the month is
5,500. Consider requirements (b), (c), and
(d) independently of each other.
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if
the sales price decreases by...
Martin Company is considering the introduction of a new product. To determine a selling price, the...
Martin Company is considering the introduction of a new product.
To determine a selling price, the company has gathered the
following information: Number of units to be produced and sold each
year 19,000 Unit product cost $ 50 Projected annual selling and
administrative expenses $ 72,000 Estimated investment required by
the company $ 340,000 Desired return on investment (ROI) 19 % The
company uses the absorption costing approach to cost-plus pricing.
Required: 1. Compute the markup required to achieve the...
1. Derby Phones is considering the introduction of a new model of headphones with the following...
1. Derby Phones is considering the introduction of a new model
of headphones with the following price and cost
characteristics:
Sales price
$
19
per unit
Variable costs
6
per unit
Fixed costs
20,000
per month
Assume that the projected number of units sold for the month is
6,000. Consider requirements (b), (c), and
(d) independently of each other.
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if
the sales price decreases...
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics:
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics:
Sales price
$
16
per unit
Variable costs
4
per unit
Fixed costs
48,000
per month
2.
value:1.00 points
Required information
Required:
a. What number must Warner sell per month to break even?
b. What number must Warner sell per month to make an operating profit...
Larry Inc. is considering the acquisition of a new piece of equipment. The machine’s price is...
Larry Inc. is considering the acquisition of a new piece of
equipment. The machine’s price is $600,000. In addition,
installation and transportation costs would be $50,000 and would
require $10,000 in spare parts thus increasing the firm’s
networking capital by that amount. The system falls into the MACRS
3-year class (depreciation rates of 33%, 45%, 15%, and 7%). The
current machine it would replace could be sold for $50,000 and
currently has no book value. It is estimated that the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Why would UnderArmour want to be sure that consumers can clearly see different models ( about...
- Five years ago, Miguel invested a stock with price $35 per share. The stock price at...
- You are touring a distant planet on which the magnitude of the gravitational acceleration is 65%...
- GDP increased from $16.55 trillion to $17.28 trillion. What was the growth rate of GDP? The...
- Forming an Accountable Care Organization in a hospital setting What is an ACO and its reimbursement?...
- Implement a method that meets the following requirements: (a) Has the same requirements as the above...
- The Good’n’Fresh Grocery Store has two checkout lanes and four employees. Employees are equally skilled, and...
ADVERTISEMENT