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

Step 1: Identify the Revenue (Price) = $1.7 million.Step 2: Identify the Cost of Goods Sold (COGS) =…

Answered: A Scandinavian wind turbine…

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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A company planning to market a new model of motor scooter analyzes the effect of changes in the selling price of the motor scooter, the number of units that will be sold, and the cost of making the motor scooter on the estimated net present value (NPV) of the project. They predict that the break-even point for sales price for the motor scooter is $2,480. What does this mean? O If the motor scooter is sold for $2,480, then the project will make a profit. The net present value (NPV) of the project equals to zero at the sale price of the motor scooter equal to $2,480. O At the price of $2,480, the revenue for the scooter will exactly equal its production cost. O The predicted selling price of the motor scooter is $2,480. O The maximum that the motor scooter can sell for and still make the project have a positive net present value (NPV) is $2,480.
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
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?
The Miramar Company is going to introduce one of three new products: a Widget, a Hummer, or a Nimnot. The market conditions (favourable, Stable, or unfavourable) will determine the profit or loss the company realizes, as shown In the following payoff table: State of Nature Favourable Stable Unfavourable Product 0.2 0.7 0.1 $ $ $ Widget 120,000 70,000 -30,000 Hummer 60,000 40,000 20,000 Nimnot 35,000 30,000 30,000 Required: 1. Develop the opportunity loss table and compute the expected opportunity loss for each product. 2. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.
A company planning to market a new model of motor scooter analyzes the effect of changes in the selling price of the motor scooter, the number of units that will be sold, the cost of making the motor scooter, the effect on Net Working Capital, and the cost of capital for the project. They predict that the break-even point for the sales price for the motor scooter is $2,480. What does this mean? O If the motor scooter is sold for $2,480, then the project will make a profit. O If the motor scooter is sold for $2,480, then the net present value (NPV) for the product will be zero. O The predicted selling price of the motor scooter is $2,480. O The maximum that the motor scooter can sell for and still make the project have a positive net present value (NPV) is $2,480.
D) is what i need assistance with
Akira Enterprises is considering forming a new business to manufacture cutting-edge automotive stereo systems. The sales price will be 1.5 times the variable cost per unit; the VC/unit is expected to be P2.50, and fixed costs are estimated to be P150,000. What sales volume would be expected to break even, i.e., have a zero EBIT for the stereo business?
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