Question: Can someone please answer this and please type the answers for these. 1. Assume that TexCo is a widget manufacturer. It costs TexCo $62 (parts

Can someone please answer this and please type the answers for these.

1. Assume that TexCo is a widget manufacturer. It costs TexCo $62 (parts and labor) to manufacture each unit, and it incurs fixed overhead of $2.5 million per year. If TexCo prices the widgets using a 40% markup on cost, how many widgets must it sell annually in order to break even? Show your work?

2. Based on your answer to #1, if TexCo actually sells 150,000 units this year, what will its net profit be? Show your work.

3. Flips Flops, a small retailer located in South Padre Island, purchases Sea Turtle brand flip flops at a cost of $12 per pair. If the manager prices the flip flops using a 60% markup on price, what is the selling price to consumers?

4. Assume that it is nearing the end of the summer, and the Flips Flops still has a large number of Sea Turtle flip flops in the store. If the manager marks the price of the flip flops down by 40%, what is the new selling price of this item?

5. Peaks is a snowboard manufacturer, and is working on a new, high-end board to sell to retail stores. These boards will have a suggested retail price of $749. If Peaks knows that these retailers price their boards using a 50% "markup on retail", and Peaks wants to be able to achieve a 60% "markup on cost", what is the most that it can spend, per unit, to produce this board?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!