Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a. $3 b. $4 c. $5 d. $1 provide answer

Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a. $3 b. $4 c. $5 d. $1 provide answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EA: Marchete Company produces a single product. They have recently received the results of a market...

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Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0
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Flyer company sells a product in a competitive marketplace given answer accounting questions
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What is the volume of sales in units required to achieve the target profit?
Question 1 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Question 2 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission?Question 3 Which one of the following options provides better units BEP for the company? Option A: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Option B: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission. Option A Option B Both options are same None of the OptionsUse the available pick lists from within the three boxed areas to change values, noting how the break-even units change within the green - shaded area. Think critically about why the changes in…