XYZ Inc. sells photoframes for $20 each. The fixed costs are $60,000, and variable costs are $7

Fantastic news! We've Found the answer you've been seeking!

Question:

XYZ Inc. sells photoframes for $20 each. The fixed costs are $60,000, and variable costs are $7 per photoframe.

1. What is the firm's gain or loss at sales of 6,000 photoframes? At 15,000 photoframes?

2. How would the break-even point be affected if the selling price was raised to $25? How is this analysis significant?

3. If the selling price was raised to $25 but variable costs rose to $13 a unit, what would happen to the break-even point?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324272055

10th edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Posted Date: Feb 26, 2024 02:23 AM

See More Questions

Question Five A control system should focus on response, if control data do not result in action, then the system is ineffective. The response to control data must be timely. Discuss the concept of...
The Warren Watch Company sells watches for $26, fixed costs are $155,000, and variable costs are $13 per watch. a. What is the firms gain or loss at sales of 9,000 watches? At 15,000 watches? b. What...
The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are $15 per watch. a. What is the firms gain or loss at sales of 8,000 watches? at 18,000 watches? b....
A politician claims that the mean salary for managers in his state is more than the national mean, $85,000. Assume the the population is normally distributed and the population standard deviation is...
Describe yourself as a stakeholder in a company. What kind of stakeholder role do you play now? What kind of stakeholder roles do you expect to play in the future?
A product can satisfy customers convenience needs by being easy to purchase. What are some other ways that a product could satisfy customers need for product convenience?
Consider a European call option on a non-dividend-paying stock. The strike price is $K$, the time to expiration is $T$, and the price of one unit of a zero-coupon bond maturing at $T$ is...
Benkhadour Co. manufactures four different products. Because the quality of its products is high, the demand for them is more than the company can produce. Based on the enquiries made by current and...
Mirada Company manufactures handheld calculators and has the following information available for the month of July: Work in process, July 1 ( 1 0 0 % complete for materials, 2 5 % for conversion ) 1...
List the MNCs key stakeholders and describe their stake in the firm.
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format...
In years past, car frames were built as stiff as possible, but today's cars are built with "crumple zones" in the front and rear portions of the frame. What is the purpose of this design change?
Review the Ethical Focus feature, Whats in a Name? Youre Hired... or Not!, and use Bruners model of the perceptual process to explain why job applicants with ethnic-sounding names are less likely to...
An $8.20-\mathrm{kg}$ object is sliding across the ice at $2.34 \mathrm{~m} / \mathrm{s}$. An internal explosion occurs, splitting the object into two equal chunks and adding $16 \mathrm{~J}$...
Select a publicly traded company for analysis or use a company assigned by your instructor. Using the firms most recent Form 10-K report (accessed through the SEC EDGAR database or from the companys...
A toy wagon initially at rest is pulled by a child from one end of a driveway to the other end. The magnitude of the force the wagon exerts on the child is the same as the magnitude of the force the...
19. Red Company is a calendar-year firm with operations in several countries. At January 1, 2018, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of...
Consider the following cash flows in Table P5.5. (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Assuming...
The availability of bank credit is often more important to a small firm than to a large one. Why?
The Smythe-Davidson Corporation just issued its annual report. The current year's balance sheet and income statement as they appeared in the annual report are given below. Answer the questions that...
The Shipley Corporation produces tea kettles, which it sells for $15 each. Fixed costs are $700,000 for up to 400,000 units of output. Variable costs are $10 per kettle. a. What is the firm's gain or...
What concept does density represent?
What are the seven SI base units and the physical quantities they represent?
What two pieces of information are necessary to express any physical quantity?

XYZ Inc. sells photoframes for $20 each. The fixed costs are $60,000, and variable costs are $7

Question:

Expert Answer:

Answers to questions about XYZ Inc 1 Gain or Loss a 6000 photoframes Total revenue 6000 photoframes ... View the full answer

Fundamentals of Financial Management

Students also viewed these finance questions