1. Quiz Jadara Inc. makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable cost to be $42 per unit. Compute the following before change and after change on Break Even Point: The price increase in raw materials which include travel bags expect the variable cost increase $3 to be $45. 1- 2- The company want to enter new machine to improve the product (travel bags) & expect this machine increase fixed cost about $30000 to be $350000 with remain sales price & variable cost per unit not change. 3- The sales price increase $4 to be $60 with remain variable cost per unit and fixed cost not change.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Quiz
Jadara Inc. makes travel bags that sell for $56 each. For the coming year, management
expects fixed costs to total $320,000 and variable cost to be $42 per unit. Compute the
following before change and after change on Break Even Point:
1- The price increase in raw materials which include travel bags expect the variable cost
increase $3 to be $45.
2- The company want to enter new machine to improve the product (travel bags) &
expect this machine increase fixed cost about $30000 to be $350000 with remain sales
price & variable cost per unit not change.
3- The sales price increase $4 to be $60 with remain variable cost per unit and fixed cost
not change.
Transcribed Image Text:1. Quiz Jadara Inc. makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable cost to be $42 per unit. Compute the following before change and after change on Break Even Point: 1- The price increase in raw materials which include travel bags expect the variable cost increase $3 to be $45. 2- The company want to enter new machine to improve the product (travel bags) & expect this machine increase fixed cost about $30000 to be $350000 with remain sales price & variable cost per unit not change. 3- The sales price increase $4 to be $60 with remain variable cost per unit and fixed cost not change.
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