The Canadian Zinc Company is one of the several suppliers of PART X to an automobile...

 

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The Canadian Zinc Company is one of the several suppliers of PART X to an automobile manufacturing firm Orders are distributed to the various die-casting companies on an even basis. However, the sales manager of the company believes that with the reduction in price by $0.50, he could secure a 30 percent increase in units sold. The proposal has the same variable cost per unit and the same total fixed cost. The general manager has asked you to analyze the sales manager's proposal and submit your recommendation. The following data are available: Unit Price Unit Sales Total Variable Cost Total Fixed Cost Net profit original $30,000 profit. original $30,000 profit. Present $ 2.50 200,000 $350,000 $120,000 $30,000 Determine the Net Income or Net Loss on the sale's manager's proposal. Compute the sales units required under the proposed price to make the Compute the sales $ required under the proposed price to make the The Canadian Zinc Company is one of the several suppliers of PART X to an automobile manufacturing firm Orders are distributed to the various die-casting companies on an even basis. However, the sales manager of the company believes that with the reduction in price by $0.50, he could secure a 30 percent increase in units sold. The proposal has the same variable cost per unit and the same total fixed cost. The general manager has asked you to analyze the sales manager's proposal and submit your recommendation. The following data are available: Unit Price Unit Sales Total Variable Cost Total Fixed Cost Net profit original $30,000 profit. original $30,000 profit. Present $ 2.50 200,000 $350,000 $120,000 $30,000 Determine the Net Income or Net Loss on the sale's manager's proposal. Compute the sales units required under the proposed price to make the Compute the sales $ required under the proposed price to make the

Answer rating: 100% (QA)

NOTES Since the manager proposes the unit price to drop by 05 and increase the sales units by 30 fol... View the full answer