5. A merchant buys a particular product at P 20 per unit and sells them at P 35 per unit. His fixed cost is P 200. Due to stiff competition, the sale of the product began to decline. The selling price decreased by 2% of the units sold. The variable and fixed cost remains constant. a. Represent the new selling price. b. Determine the TR, TC, and Profit function. C. Find the BEP quantity revenue. d. What is the profit at a sale volume of 100 units?

5. A merchant buys a particular product at P 20 per unit and sells them at P 35 per unit. His fixed cost is P 200. Due to stiff competition, the sale of the product began to decline. The selling price decreased by 2% of the units sold. The variable and fixed cost remains constant. a. Represent the new selling price. b. Determine the TR, TC, and Profit function. C. Find the BEP quantity revenue. d. What is the profit at a sale volume of 100 units?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answers
If the percentage change in operating income resulting from a given percentagechange in sales is higher than the percentage change in sales itself, thena. an increase in the selling price would not alter the contribution marginper unit.b. variable costs per unit have increased.c. variable costs have decreased in total.d. the company has operating leverage.e. the company has no fixed costs.
Help question 30
XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. At the same time, the company plans to decrease the selling price per unit by half. Assuming that the total fixed cost and the variable cost per unit remain unchanged, what would be the effect on ?profit .Cannot be determined using the information in the question a O Profit would remain unchanged b O Profit would decrease .c O None of the given answers .d O Profit would increase e O
Once the break-even point is reached, which of the following statements is false? Select one: None of these are false Net income will increase by the unit contribution margin for each unit sold above the break even point O The total contribution margin increase The contribution margin ratio will remain the same
DONT GIVE ANSWER IN IMAGE FORMAT
If sales volume increases and all other factors remain constant, then the: O contribution margin ratio will increase. O margin of safety will increase. break-even point will decrease. O net operating income will decrease.
A higher gross margin implies ______________ . The company has huge market share The company has the flexibility to change its pricing policy The company sells goods at huge discounts The cost of goods sold remains same over the years
Assuming all other things are the same, selling price per unit must have even point. Select one: O A. remained the same O B. increased O C. increased first, then decreased O D. decreased if there was a decrease in the break-
Each of a company's two product lines has a different contribution margin ratio . If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000

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