Determine the Weighted Average CM of TGM for these products. Round to nearest $0.01. Based on
Question:
Determine the Weighted Average CM of TGM for these products. Round to nearest $0.01.
Based on the given sales mix, what is the total number of units required to break-even? Round to the nearest unit.
If the target sales mix is achieved and 280,000 total units are sold, what is the estimated profit after tax?
TGM expects the target sales mix can be achieved and 300,000 total units will be sold in the upcoming year. TGM's managers also believe that a $1.50 per unit increase in the current estimated sales price of the Euro product can be obtained by investing in a $100,000 sales campaign. If no other assumptions are changed, what is the impact upon total expected before tax profits if the price increase and sales campaign are implemented? Use a positive number to indicate an increase in expected profits and a negative number to indicate a decrease in expected profits.
In FY2023 TGM sold 110,000 units of the Original; 70,000 units of the Euro and 20,000 units of the Pacific. For FY2024, TGM anticipates a change in import tariffs that will increase the variable cost of the Euro product by $2.00 per unit. TGM is also planning for total units sales to increase by 5% in FY2024, but expects the sales mix to equal the FY2023 actual results. No other changes from FY2023 are anticipated, what is the total number of units required to break-even for FY2024?
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith