COST (Dollars per toy car)10984_L_LAC001020 30 40 50 60 70 8090100QUANTITY (Thousands of toy cars)Suppose that at the current market price of toy cars, the demand for Giocattolo's product is 20,000 toy cars per year in Italy and 10,000 toy cars peryear in Spain. (Hint: Select each point on the previous graph to see its coordinates.)Based on Giocattolo's average cost curve, within one factory it can produce 10,000 toy cars at $per toy car, produce 20,000 toy cars atper toy car, and produce the total of 30,000 toy cars at $per toy car.

Kindly select each point on the graph given, then select 10, 20 and 30 (thousands) toys on the…

Answered: COST (Dollars per toy car) 10 9 8 4…

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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Acme Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. If Acme Products requires a 75% return on sales to undertake production, what is the target cost for the new widget? Select one: O a. $31.50. O b. $67.50. OC. $58.50. Od. $22.50.
Vaughn Manufacturing wants to produce and sell a new lightweight radio. Desired profit per unit is $1.60. The expected unit selling price is $24 based on a volume of 11000 units. What is the total target cost at this sales volume? O $281600 O $264000 $246400 O $17600
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Swifty Corporation is contemplating the production and sale of a new widget. Projected sales are $360000 (or 75000 units) and desired profit is $45000. What is the target cost per unit? $4.20 $4.80 $5.40 $6.00
Suppose that BMW can produce any quantity of cars at a constant marginal cost equal in the United States. The demand for BMWS in each market is given by $20,000 and a fixed cost of $10 billion. You are asked advise the CEO as to what prices and quantities BMW should set for sales in Europe and QE = 5,000,000 - 100PE and Qu = 1,500,000 - 20PU where the subscript E denotes Europe, the subscript U denotes the United States. Assume that BMW can restrict U.S. sales to authorized BMW dealers only. a. What quantity of BMWS should the firm sell in each market, and what should the price be in each market? What should the total profit be? (round dollar amounts to the nearest penny and quantities to the nearest integer) In Europe, the equilibrium quantity is 1500000 cars at an equilibrium price of $ 35000. While in the United States, the equilibrium quantity is 550000 cars at an equilibrium price of $ 47500 BMW makes a total profit of $ 27,625,000,000 b. If BMW were forced to charge the same…
Suppose consumers will purchase q units of a product at a price of 100/q+7 dollars per unit. What is the minimum number of units that must be sold in order that sales revenue be greater than $9000?
Bramble Corp. is contemplating the production and sale of a new widget. Projected sales are $416000 (or 80000 units) and desired profit is $40000. What is the target cost per unit? $4.70 $5.00 $5.20 $5.70
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 450.00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the projected number of units sold for the year is 4,750. Consider requirements (b), (c), and (d) independently of each other. 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?
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 438.00 per unit Variable costs 198.00 per unit Fixed costs 680,000 per year Assume that the projected number of units sold for the year is 4,150. Consider requirements (b), (c), and (d) independently of each other. Required: 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? omplete this question by entering your answers in the tabs below. Required A Required B…

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