Queens and Kings Inc. sells high quality chess sets (with a clock) for $100.00. The fixed...

   

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Queens and Kings Inc. sells high quality chess sets (with a clock) for $100.00. The fixed costs for the business are $120,000 and the variable cost per set is $60.00. Determine: (7 marks total) a. The number of sets needed to be sold to just breakeven (1) b. The amount of profit they earn if they sell 4,000 sets (1) c. If they now decide to increase the price by 8%, what is the new total volume needed to sell to make the same profit in part "b". (3) d. What is the decrease in volume from 4,000 to in part c allowable, after the 8% price increase (IE Can sell "x" amount less than before? (1) e. What is the percentage decrease in sales allowable in part "d" (1) Queens and Kings Inc. sells high quality chess sets (with a clock) for $100.00. The fixed costs for the business are $120,000 and the variable cost per set is $60.00. Determine: (7 marks total) a. The number of sets needed to be sold to just breakeven (1) b. The amount of profit they earn if they sell 4,000 sets (1) c. If they now decide to increase the price by 8%, what is the new total volume needed to sell to make the same profit in part "b". (3) d. What is the decrease in volume from 4,000 to in part c allowable, after the 8% price increase (IE Can sell "x" amount less than before? (1) e. What is the percentage decrease in sales allowable in part "d" (1)

Answer rating: 100% (QA)

a To break even the total revenue equals the total cost Let x be the number of sets needed to be sol... View the full answer