Question: Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period must ended when the company produced and sold 42.000

 Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following
data relate to the period must ended when the company produced and
sold 42.000 speaker sets, Sales Variable costs Fixed costs 53,360,000 340,000 2,200,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce
costs Variable costs are expected to average 518 per set; annual fixed

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period must ended when the company produced and sold 42.000 speaker sets, Sales Variable costs Fixed costs 53,360,000 340,000 2,200,000 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs Variable costs are expected to average 518 per set; annual fixed costs are anticipated to be $1984.000 on the following requirements, ignore income taxes) Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double that your assuming that manufacturing operations remain in the United States DO 2. Determine the break-even point in speaker sets if operations are shifted to Mexico 3. Assume that management desires to achieve the Mexican break even point however operations will remain in the United States o. If variable costs remain constant, by how much must fixed costs changer b. If fixed costs remain constant by how much must unit variable cost change? 4. Determine the impact increase decrease or no effect of the following operating changes nortinn tirantering answers in the tabs below Required 3 Required 4 Calculate the company's current Income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. Current income Required dollar sales Required 2 > Required 1 Required 2 Required 3 Required 4 Determine the break-even point in speaker sets if operations are shifted to Mexico. Break-even point units Required i Required 2 Required 3 Requ Assume that management desires to achieve the Mexican break even point; however, operations will remain in the United States a. If variable costs remain constant by how much must fixed costs change? b. If fixed costs remain constant, by how much must unit variable cost change? (Do not round intermediate calculations and round your final answer to 2 decimal places) Show less Fed costs 6. Va conts by (per unit Required 2 Required 4 ) Determine the impact increase, decrease, or no effect) of the following operating changes. Efect of an increase in direct material costs on the break even point Elect of an increase in tored administrative couts on the unit contribution margin Effect of an increase in the unit contribution margin on net income Electo a decrease in the urberol units sold on the break even point Required

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 Accounting Questions!