Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profitof £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual totalfixed costs equal £147, 200. Considering this information, which of the following statements is true?O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet.O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits.O c. Contribution per unit equals £46.O d. All the answers are true.

The contribution Margin is calculated as difference between sales and variable cost. The break even…

Answered: Clockmaker Ltd. makes a product called…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $21.15 per pound and costs $16.40 per pound to produce. Product D would sell for $42.80 per pound and would require an additional cost of $9.55 per pound to produce. The differential cost of producing Product D is Oa. $9.55 per pound Ob. $5.73 per pound Oc. $7.64 per pound Od. $11.46 per pound
A firm has fixed costs of $25,000 associated with the manufacture of lawn mowers that cost $480 per mower to produce. The firm sells all the mowers it produces at $580 each. Find the cost, revenue and profit equations. Find the break-even quantity. (Let x be the number of mowers.)C(x) = R(x) = P(x) = break even quantity= ? mowers
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A company operates in a competitive marketplace. They look to the market to determine their selling price. It looks like the market will bear a price of $438. The company has a goal of earning 10% return on sales on each unit. What would their target cost be? Round your answer to the nearest whole dollar.

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