Question: Please help me with this problem on Changes in Fixed and Variable Costs: Break-Even and Target Profit Analysis. Problem 5-25 Changes in Fixed and Variable

Please help me with this problem on Changes in Fixed and Variable Costs: Break-Even and Target Profit Analysis.

![and Variable Costs; Break-Even and Target Prot Analysis [LOB-4, L05-5, L05-6] Neptune](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6677f52acda8a_5786677f52ab4a42.jpg)
Problem 5-25 Changes in Fixed and Variable Costs; Break-Even and Target Prot Analysis [LOB-4, L05-5, L05-6] Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $2.80 per unit. Enough capacity exists in the company's plant to produce 30,100 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.78, and xed expenses associated with the toy would total $45,553 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 30,100 units that the company is able to produce. Additional manufacturing space can be rented from another company at a xed expense of $2,278 per month. Variable expenses in the rented facility would total $1.96 per unit, due to somewhat less efcient operations than in the main plant. Required: 1. What is the monthly break-even point for the new toy in unit sales and dollar sales. (Round "per unit" to 2 decimal places. intermediate and nal answers to the nearest whole number.) 2. How many units must be sold each month to attain a target prot of $10,752 per month? (Round "per unit" to 2 decimal places, intermediate and nal answer to the nearest whole number.) 3. lithe sales manager receives a bonus of 20 cents for each unit sold in excess of the breakeven point, how many units must be sold each month to attain a target prot that equals a 21% return on the monthly investment in xed expenses? (Round "per unit" to 2 decimal places. intermediate and nal answer to the nearest whole number.) Breakeven point in unit 53'85 Break-even point in dollar sales Unit sales needed to attain target prot Unit sales needed to attain target prot
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
