A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department.Fixed costs of $21,000 per month are allocated to the felt-tip operation, and variable costs are 25 cents per pen.a. Find the break-even quantity if-pens sell for $1 each. (Round your answer to the next whole number.)QBEPAnswer is complete and correct.Price28,000unitsb. At what price must pens be sold to obtain a monthly profit of $18,000, assuming that estimated demand materializes? (Round youranswer to 2 decimal places.)X Answer is not complete.

Break-even units sold refers to the number of units that a company needs to sell in order to cover…

Answered: A producer of felt-tip pens has…

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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A product is priced to sell for $12 with average variable costs of $8. The company expects to ear a profit of $400,000 with its total fixed costs of $120,000. Calculate the minimum number of units that must be sold in order to reach this target return.
please answer within 30 minutes.
A furniture manufacturer specializes in wood tables. The tables sell for $220 per unit and incur $110 per unit in variable costs. The company has $17,575 in fixed costs per month. Calculate the breakeven point in units under each independent scenario. 14. Variable costs increase by $15 per unit. 15. Fixed costs decrease by $525. 16. Sales price increases by 20%. Begin by selecting the formula labels. Then enter the amounts to compute the number of wood tables the company must sell to break even under each independent scenario, beginning with scenario 14. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 10.25 would be rounded to 11.) = Required sales in units 14. ( 15. ( 16. ( + + + ) ÷ ) ÷ ) = ) ÷ = = -C =
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Assume the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in selling price, combined with a P700,000 increase in advertising expenditures, would cause annual sales in units to increase by 50%. REQUIRED: 1. Prepare two contribution margin income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. 2. Would you recommend that the company do as the sales manager suggests? Why?
1. Using the High-Low method, predict the cost of producing 900 treats. Enter your answer rounded to the nearest whole number without a dollar sign or comma (i.e., 1250) 2. ABC Company leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. ABC made 9,000 copies and paid a total of $ 473 in January. In April, they paid $ 287 for 5,000 copies. What is the variable cost per copy if ABC uses the high-low method to analyze costs? Enter your answer with two decimals (i.e., .xx)

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