The following costs relate to York Company for a relevant range of up to 30,000 units...

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The following costs relate to York Company for a relevant range of up to 30,000 units annually: Variable Costs per Unit: Fixed Costs per Year: Direct materials $2.50 Manufacturing overhead $24,000 Direct labor 0.80 Selling and Administrative 16,000 Manufacturing Overhead 1.25 $4.55 Total $40,000 Selling and administrative Total 1.50 $6.05 The current selling price per unit of product is $10 but the proposed promotional price to expand market share is $9. a. Determine York Company's profit equation using the (1) current price and (2) the proposed price. (1) Current price: ($ x number of units) - ( $ +[$ x number of units]) (2) The proposed price: ($ x number of units) - ($ +[$ x number of units]) b. Calculate York Company's current profit at a volume of 24,000 units and the proposed price profits at a forecasted volume of 28,800 units. Profits at current volume and selling price $ Profits at promotional price with increased volume $ The following costs relate to York Company for a relevant range of up to 30,000 units annually: Variable Costs per Unit: Fixed Costs per Year: Direct materials $2.50 Manufacturing overhead $24,000 Direct labor 0.80 Selling and Administrative 16,000 Manufacturing Overhead 1.25 $4.55 Total $40,000 Selling and administrative Total 1.50 $6.05 The current selling price per unit of product is $10 but the proposed promotional price to expand market share is $9. a. Determine York Company's profit equation using the (1) current price and (2) the proposed price. (1) Current price: ($ x number of units) - ( $ +[$ x number of units]) (2) The proposed price: ($ x number of units) - ($ +[$ x number of units]) b. Calculate York Company's current profit at a volume of 24,000 units and the proposed price profits at a forecasted volume of 28,800 units. Profits at current volume and selling price $ Profits at promotional price with increased volume $

Answer rating: 100% (QA)

Answer a 1 Current price profit equation Profit Selling Price Variable Costs per Unit x Number of Un... View the full answer