Executives at Studio Recordings, Inc. produced the latest compact disc the Starshine Sisters Band,titled Sunshine/Moonshine. The following cost information pertains to the new CD.CD package and disc (direct materials and labor)Songwriters' royaltiesRecording artists' royaltiesAdvertising and promotionStudio Recordings, Inc.'s overheadSelling price to CD distributorCalculate the following if the selling price is cut by 5%:f) Break-even volume in CD unitsg) Break-even volume in dollarsh) Necessary CD volume to achieve $200,000 profit,$1.25/CD$0.35/CD$1.00/CD$275,000$250,000$9.00

Break Even Point :— Break Even Point is a Point of Sale where no Profit No loss. Break Even Point in…

Answered: Executives at Studio Recordings, Inc.…

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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please dont provide answer in image format thank you
Dewey Manufacturing has been approached by a new customer with an offer to purchase 500 units of its hands-free automotive model SMAK at a price of $15,000 per unit. Existing sales would not be affected, and Dewey has sufficient capacity to produce the special order. Fixed overhead will not change if Dewey accepts the order or not. Unit cost data is: Per Unit: Direct Materials $6,000 Direct Labor $2,500 Variable OVHD $3,500 Fixed OVHD $10,000 $22,000 Normal sales price is $27,000. Assume Dewey decides to accept the order. How much will their operating income change? Should they have accepted the order

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