Big Chill, Inc. sells portable dehumidifier units at the current price of $183. Unit variable costs...

Big Chill, Inc. sells portable dehumidifier units at the current price of $183. Unit variable costs are $75. Fixed costs, made up primarily of salaries, rent, insurance and advertising, are $4,018,000. Calculate breakeven sales for Big Chill, Inc. Round your answer to the nearest whole number.

A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.7% commission and incur $610,000 in fixed costs, while an internal sales force has fixed costs projected at $2,150,000 and would receive 2.7% commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars.

Expert Solution

Hope this will help you to get the problem if you have any questions please feel free to ask.

Thank you!!!

Colby Messinger answered 2 years ago

Big Chill, Inc. sells portable dehumidifier units at the current price of $171. Unit variable costs...

Big Chill, Inc. sells portable dehumidifier units at the current price of $171. Unit variable costs are $79. Fixed costs, made up primarily of salaries, rent, insurance and advertising, are $5,490,000. Calculate breakeven sales for Big Chill, Inc. Round your answer to the nearest whole number. Big Chill, Inc. sells portable dehumidifier units at the current price of $125. Unit variable costs are $83. Fixed costs, made up primarily of salaries, rent, insurance and advertising, are $4,149,000. Management is considering...

Question 1 Big Chill, Inc. sold 154,795 portable dehumidifier units at $126. Unit variable costs were...

Question 1 Big Chill, Inc. sold 154,795 portable dehumidifier units at $126. Unit variable costs were $71. Fixed costs were $3,280,000. At this price and volume, what was the firm's return on sales? Report your answer as a percentage and round to the nearest whole number. Question 2 Big Chill, Inc. sells portable dehumidifier units at $189. Unit variable costs are $114. Fixed costs are $4,175,000. Management has set a profit objective of 16.4% return on sales. Calculate the sales...

Sells price per unit=$200 variable manufacturing costs per unit= $50 variable S&A costs per unit= $10...

Sells price per unit=$200 variable manufacturing costs per unit= $50 variable S&A costs per unit= $10 Fixed MOH= $50,000 Fixed S&A costs=$10,000 Units produced=5000 Units sold= 4000 Produce a full absorption income statement, what is the operating income produce a variable costing income statement, what is the operating income if units produced exceeds untis sold, does full absorption accounting or varible cost account result in a higher operating income

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and...

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is ($50,000). Determine the following: Round the contribution margin ratio to one decimal place. a. Unit contribution margin $ per unit b. Contribution margin ratio % c. Fixed costs per unit at production of 25,000 units $ per unit

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs...

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a new machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine?

2.) Harry Company sells 27,000 units at $34 per unit. Variable costs are $21.08 per unit,...

2.) Harry Company sells 27,000 units at $34 per unit. Variable costs are $21.08 per unit, and fixed costs are $160,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $ 3.) Megan Company has fixed costs of $505,920. The unit selling price, variable cost per unit,...

20-Spice Inc.'s unit selling price is $54, unit variable costs are $33, fixed costs are $120,000,...

20-Spice Inc.'s unit selling price is $54, unit variable costs are $33, fixed costs are $120,000, and current sales are 9,300 units. How much will operating income change if sales increase by 5,500 units? 30 The contribution margin ratio is the a.same as the variable cost ratio b.portion of equity contributed by stockholders c.same as the profit-volume ratio d.same as profit

if fixed costs are $728,400, the unit selling price is $42, and the unit variable costs...

if fixed costs are $728,400, the unit selling price is $42, and the unit variable costs are $27, what is the break-even sales (units) if target profits are increased by $330,930? A) 26,498 B) 22,062 C) 48,560 D) 70,622 if the contribution margin ratio for 4 Zsons Company is 30%, sales were $843,000 and fixed costs were $113,295, what was the income from operations? A) 252,900 B) 139,605 C) 158,200 D) 377,650 Period Costs: A) are expensed as costs are...

If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs...

If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs are $73, what are the break-even sales in units (rounded to a whole number)?

Sales price per unit: (current monthly sales volume is 120,000 units). . . . $25.00 Variable...

Sales price per unit: (current monthly sales volume is 120,000 units). . . . $25.00 Variable costs per unit: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.60 Direct labor. . . . . . . . . . . . . . . ....

Question