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3. How much would the variable cost per unit of the touring model have to change before it had the same break-ev- units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.) The variable cost per unit would have to

3. How much would the variable cost per unit of the touring model have to change before it had the same break-ev- units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.) The variable cost per unit would have to

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [The following information applies to the questions displayed below.) Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 31,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 25,000 and 29,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Model Selling price per unit Variable costs per unit Mountaineering $140.00 87.20 Touring $136.00 87.20 Fixed costs will total $618,400 if the mountaineering model is produced but will be only $523,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 45 percent income tax rate. 3. How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.) The variable cost per unit would have to by
Transcribed Image Text:Required information [The following information applies to the questions displayed below.) Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 31,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 25,000 and 29,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Model Selling price per unit Variable costs per unit Mountaineering $140.00 87.20 Touring $136.00 87.20 Fixed costs will total $618,400 if the mountaineering model is produced but will be only $523,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 45 percent income tax rate. 3. How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.) The variable cost per unit would have to by
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