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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics Sales price S per 24 unit per Variable casts 9. unit per month Fixed costs 26, 000 Assume that the projected number of units sold for the month is 5,500. Consider requirements (. (4, and (4 independently of each other Required a What will the operating profit be? Operating prof b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calculations Sales price decreases by Operating 10 percent Sales price increases by 20 Operating percent Iprofe by proft by e What is the impact on operating profit if variable costs per unit decrease by 10 percent? increase by 20 percent? (Do not round intarmediate calicutations.) Variable costs per unit decrease by 10 percent Variable costs per unit increase by Operating 20 percent Operating prote by proft by d. Suppose that foxed costs for the year are 10 percent lower then projected, and variable costs per unit are 10 percent higher than projected, What Impact will these cost changes have on operating profit for the year? W profit go up? Down? By how much? (Do not round intermediate calculations.) Operating by Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics Sales price S per 24 unit per Variable casts 9. unit per month Fixed costs 26, 000 Assume that the projected number of units sold for the month is 5,500. Consider requirements (. (4, and (4 independently of each other Required a What will the operating profit be? Operating prof b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calculations Sales price decreases by Operating 10 percent Sales price increases by 20 Operating percent Iprofe by proft by e What is the impact on operating profit if variable costs per unit decrease by 10 percent? increase by 20 percent? (Do not round intarmediate calicutations.) Variable costs per unit decrease by 10 percent Variable costs per unit increase by Operating 20 percent Operating prote by proft by d. Suppose that foxed costs for the year are 10 percent lower then projected, and variable costs per unit are 10 percent higher than projected, What Impact will these cost changes have on operating profit for the year? W profit go up? Down? By how much? (Do not round intermediate calculations.) Operating by
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Answer Solution a Particular Amount Sales 5500 24 132000 Less Variable costs 5500 6 33000 Contributi... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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