Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 443.00 per unit Variable costs 203.00 per unit Fixed costs 715,000 per year Assume that the projected number of units sold for the year is 4,400. Consider requirements (b), (c), and (d) independently of each other. Required: 1. What will the operating profit be? 2. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? 3. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? 4. 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?
I need answer of last three requirement
I need answer of last three requirement
I need answer of last three requirement
please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.
Sales price $ 443.00 per unit
Variable costs 203.00 per unit
Fixed costs 715,000 per year
Assume that the projected number of units sold for the year is 4,400. Consider requirements (b), (c), and (d) independently of each other.
Required:
1. What will the operating profit be?
2. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent?
3. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?
4. 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?
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