Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 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. Selling price per unit Variable costs per unit Problem 7-51 Part 3 Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is produced. Alpine Thrills Ski Company is subject to a 25 percent income tax rate. Model Mountaineering Touring $ 88.00 52.80 $80.00 52.80 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 X Answer is complete but not entirely correct. decrease by $ 4.03 X
Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 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. Selling price per unit Variable costs per unit Problem 7-51 Part 3 Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is produced. Alpine Thrills Ski Company is subject to a 25 percent income tax rate. Model Mountaineering Touring $ 88.00 52.80 $80.00 52.80 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 X Answer is complete but not entirely correct. decrease by $ 4.03 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Aa.11.
Transcribed Image Text:Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to
15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures
management that it can sell between 9,000 and 13,000 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.
Selling price per unit
Variable costs per unit
Problem 7-51 Part 3
Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is
produced. Alpine Thrills Ski Company is subject to a 25 percent income tax rate.
Model
Mountaineering Touring
$ 88.00
52.80
$80.00
52.80
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
X Answer is complete but not entirely correct.
decrease
by
$
4.03 X
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