International Printer Machines (IPM) builds three computer printer models: Imket, Laser and Color Laser. Base case...
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International Printer Machines (IPM) builds three computer printer models: Imket, Laser and Color Laser. Base case information for these three products are as follows: Selling price per unit Variable Cost per unit Expected Unit sales (annual) Sales mix INKJET 250.00 100.00 12,000 60% LASER COLOR LASER 1,600.00 800.00 2,000 10% 400.00 150.00 6,000 30% TOTAL 20,000 100% Total annual Fixed Costs are P 5,000,000.00. Assume that each scenario that follows is independent of the others. Unless stated otherwise, the variables are the same as in the base case. 1. Prepare a contibution margin income statement fro the base case. 2. How will total profit change if the laser sales price increase by 10%? 3. How will total profit change if the inkjet sales volume decreases by 4,000 units and the sales volume other products remains the same? 4. How will total profit change if fixed costs decrease by 20%? International Printer Machines (IPM) builds three computer printer models: Imket, Laser and Color Laser. Base case information for these three products are as follows: Selling price per unit Variable Cost per unit Expected Unit sales (annual) Sales mix INKJET 250.00 100.00 12,000 60% LASER COLOR LASER 1,600.00 800.00 2,000 10% 400.00 150.00 6,000 30% TOTAL 20,000 100% Total annual Fixed Costs are P 5,000,000.00. Assume that each scenario that follows is independent of the others. Unless stated otherwise, the variables are the same as in the base case. 1. Prepare a contibution margin income statement fro the base case. 2. How will total profit change if the laser sales price increase by 10%? 3. How will total profit change if the inkjet sales volume decreases by 4,000 units and the sales volume other products remains the same? 4. How will total profit change if fixed costs decrease by 20%?
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Sure lets calculate the changes in total profit for each scenario step by step 1 Contribution Margin Income Statement for the Base Case Total Revenue ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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