Question: pls answer this question ASSIG 3-25 CVP exercises. The Unique Toys Company manufactures and sells toys. Currently, 300,000 units are sold per year at $12.50
ASSIG 3-25 CVP exercises. The Unique Toys Company manufactures and sells toys. Currently, 300,000 units are sold per year at $12.50 per unit. Fixed costs are $880,000 per year. Variable costs are $7.00 per unit. Consider each case separately: 1. a. What is the current annual operating income? b. What is the present breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A 10% increase in variable costs 3. A $250,000 increase in fixed costs and a 2% increase in units sold 4. A 10% decrease in fixed costs, a 10% decrease in selling price, a 10% increase in variable cost per unit, and a 25% increase in units sold Compute the new breakeven point in units for each of the following changes: 5. A 20% increase in fixed costs 6. A 12% increase in selling price and a $30,000 increase in fixed costs
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