Use the below table to answer the following questions. Selling Price $43.00 = Sales Volume Variable...
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Use the below table to answer the following questions. Selling Price $43.00 = Sales Volume Variable 2,200 3,200 Fixed Cost Cost 4,200 Profitability 5,200 6,200 $47,200 15 $14,400 $42,400 $70,400 $98,400 $126,400 47,200 16 12,200 39,200 66,200 93,200 120,200 47,200 17 10,000 36,000 62,000 88,000 114,000 57,200 15 4,400 32,400 60,400 88,400 116,400 57,200 16 2,200 29,200 56,200 83,200 110,200 57,200 17 26,000 52,000 78,000 104,000 67,200 15 (5,600) 22,400 50,400 78,400 106,400 67,200 16 (7,800) 19,200 46,200 73,200 100,200 67,200 17 (10,000) 16,000 42,000 68,000 94,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $15 if it agrees to conditions that will increase fixed cost to $57,200. Volume is expected to remain constant at 4,200 bottles. Determine the effects on the company's profitability if this opportunity is accepted. Use the below table to answer the following questions. Selling Price $43.00 = Sales Volume Variable 2,200 3,200 Fixed Cost Cost 4,200 Profitability 5,200 6,200 $47,200 15 $14,400 $42,400 $70,400 $98,400 $126,400 47,200 16 12,200 39,200 66,200 93,200 120,200 47,200 17 10,000 36,000 62,000 88,000 114,000 57,200 15 4,400 32,400 60,400 88,400 116,400 57,200 16 2,200 29,200 56,200 83,200 110,200 57,200 17 26,000 52,000 78,000 104,000 67,200 15 (5,600) 22,400 50,400 78,400 106,400 67,200 16 (7,800) 19,200 46,200 73,200 100,200 67,200 17 (10,000) 16,000 42,000 68,000 94,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $15 if it agrees to conditions that will increase fixed cost to $57,200. Volume is expected to remain constant at 4,200 bottles. Determine the effects on the company's profitability if this opportunity is accepted.
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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