Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000b)decreases by 12,650 increases by 25,300c) increases by 2750 decreases by 5500D)*** having issues with Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.Sales priceVariable costsFixed costs23 per unit5 per unit26,000 per monthAssume that the projected number of units sold for the month is 5,500. Consider requirements (b), (C), and (d) independently of eachother,Required:a. What will the operating profit be?b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher thanprojected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired DSuppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higherthan projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By howmuch? (Do not round intermediate calculations.)Operating profitdecreasesbyEXRequired D >This is a numeric cell,so please enternumbers only.

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Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000 b)decreases by 12,650 increases by 25,300 c) increases by 2750 decreases by 5500 D)*** having issues with

Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics. a) 73,000 b)decreases by 12,650 increases by 25,300 c) increases by 2750 decreases by 5500 D)*** having issues with

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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Question

Derby Phones is Considering the Introduction of a new model of headphones with the following price and cost characteristics.

a) 73,000

b)decreases by 12,650

increases by 25,300

c) increases by 2750

decreases by 5500

D)*** having issues with

Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.
Sales price
Variable costs
Fixed costs
23 per unit
5 per unit
26,000 per month
Assume that the projected number of units sold for the month is 5,500. Consider requirements (b), (C), and (d) independently of each
other,
Required:
a. What will the operating profit be?
b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?
c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?
d. Suppose that fixed costs for the year are 10 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?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
Suppose that fixed costs for the year are 10 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? (Do not round intermediate calculations.)
Operating profit
decreases
by
EX
Required D >
This is a numeric cell,
so please enter
numbers only.

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answer must be in proper format or i will give down vote
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Please do not give solution in image format thanku
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