Hurricane Products is considering the introduction of a new product with the following price and costs:...
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Hurricane Products is considering the introduction of a new product with the following price and costs: Selling Price Variable Cost per unit Fixed Costs $300,000 per year $50 Required: 20 a. How many units must be sold to break even? b. How many units must be sold to make a target profit of $15,000 c. If 7,000 units are sold, what is the operating income? d. What would be the BEP in units if the selling price decreased by 20% e. Independent of d., What would be the BEP in sales dollars if the variable cost per unit decreased by 40% f. Independent of d. and e., what would be the BEP in units and sales dollars if fixed costs increased by $50,000? g. Prepare a Contribution Margin Income Statement for each case to proof your work Hurricane Products is considering the introduction of a new product with the following price and costs: Selling Price Variable Cost per unit Fixed Costs $300,000 per year $50 Required: 20 a. How many units must be sold to break even? b. How many units must be sold to make a target profit of $15,000 c. If 7,000 units are sold, what is the operating income? d. What would be the BEP in units if the selling price decreased by 20% e. Independent of d., What would be the BEP in sales dollars if the variable cost per unit decreased by 40% f. Independent of d. and e., what would be the BEP in units and sales dollars if fixed costs increased by $50,000? g. Prepare a Contribution Margin Income Statement for each case to proof your work
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Answer rating: 100% (QA)
Lets calculate the answers to each part of the question a Breakeven units Breakeven units Fixed Costs Selling Price per unit Variable Cost per unit Br... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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