A Scandinavian wind turbine manufacturer is attempting to understand the profit impact of a price change on turbines. Currently, a 1.5- megawatt wind turbine has a total price of $1.7 million for an electric generator but faces only 1.3 million in marginal cost to deliver. What is the initial gross margin?

A Scandinavian wind turbine manufacturer is attempting to understand the profit impact of a price change on turbines. Currently, a 1.5- megawatt wind turbine has a total price of $1.7 million for an electric generator but faces only 1.3 million in marginal cost to deliver. What is the initial gross margin?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 11P: Emerald Island Company is considering building a manufacturing plant in County Kerry. Predicting...

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Groove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.sales price 443.00 per unit.variable cost 203.00 per unit.fixed costs 715,000assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other. [a] What will the operating profit be? [b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent? [c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty? [d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year Kindly solve b c and d
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Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 433.00 per unit Variable costs 193.00 per unit Fixed costs 645,000 per year Assume that the projected number of units sold for the year is 3,900. Consider requirements (b), (c), and (d) independently of each other. Questions: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 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?
Solve the quantitative analysis problembelow: Formulas: BEP : Fixed cost / (selling price per unit)-(variable cost per unit) : f / s - v profit : sX - f - vX (selling price per unit)(number of units sold) - [fixed cost + ( variable costs per unit)(number of units sold)] Jacob&Zach Co is a company that offers financial advice for people want to plan their retirement ahead of time. This company offers seminars and trainings on important topics related to retirement planning. For every seminar, the company rents a conference hall for P5,000.00. The company also spends a total of P7,500.00 to cover the cost of advertising and other expenses related to the conduct of the seminar. In every seminar, the company gives token to all attendees and each token costs P85.00. Lastly, the companycharges P350.00 per person who wants to attend seminar. Questions:1.) How many people should attend the seminar to break-even? 2.) Given this BEP number, how much is the a. revenue?b.…
Solve the quantitative analysis problem below: Formulas: BEP : Fixed cost / (selling price per unit)-(variable cost per unit) : f / s - v profit : sX - f - vX (selling price per unit)(number of units sold) - [fixed cost + ( variable costs per unit)(number of units sold)] Jacob&Zach Co is a company that offers financial advice for people want to plan their retirement ahead of time. This company offers seminars and trainings on important topics related to retirement planning. For every seminar, the company rents a conference hall for P5,000.00. The company also spends a total of P7,500.00 to cover the cost of advertising and other expenses related to the conduct of the seminar. In every seminar, the company gives token to all attendees and each token costs P85.00. Lastly, the companycharges P350.00 per person who wants to attend seminar. Questions:1.) How many people should attend the seminar to break-even?2.) Given this BEP number, how much is thea. revenue?b. expenses?c.…
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a) Identify an example of i) a sunk cost, ii) an opportunity cost, and iii) a semi-variable cost in the above. b) Calculate Simon's i) break-even point ii) margin of safety (as a percentage) given anticipated annual sales of 4,800 units and c) his anticipated annual profit on sales of 4,800 units per annum