The Lade & Bach Company produces office chairs, with 15% inflation, costs have risen. With competition,...

 

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The Lade & Bach Company produces office chairs, with 15% inflation, costs have risen. With competition, the price of the chairs remains $99.75 but the new the variable cost per chair is $57.20. The fixed costs incurred include managers salary and fringe benefits per month, which, with 15% inflation have risen to $5,980, annual property taxes of $12,000 and annual depreciation of plant and equipment of $20,000. The Board of Directors says ENOUGH! What price do chairs need to be increased to in order to get breakeven to the original number (from your answer in question one)? The Lade & Bach Company produces office chairs, with 15% inflation, costs have risen. With competition, the price of the chairs remains $99.75 but the new the variable cost per chair is $57.20. The fixed costs incurred include managers salary and fringe benefits per month, which, with 15% inflation have risen to $5,980, annual property taxes of $12,000 and annual depreciation of plant and equipment of $20,000. The Board of Directors says ENOUGH! What price do chairs need to be increased to in order to get breakeven to the original number (from your answer in question one)?

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To determine the price at which the chairs need to be increased in order to achieve breakeven with t... View the full answer