J.W. Electronics sells one of its 27-inch screen TV’s for $300. The fixed cost for producing this type of TV is $125 000. The variable cost per unit is $175 d. How many more TVs (% increase) must J.W. Electronics sell to make a profit of $62,500 if it decides to reduce its sales price to $275? Show your calculations. Only list the incremental % increase in the final input cell. e. Assume that J.W. Electronics decides to reduce its selling price to $275, but that one of its suppliers then increases the cost of the glass to make TV screens by $10 per TV. More bad news: the landlord increases the rent for J.W.’s office space by $5,000. Based on these two developments, what is the company’s new break-even
J.W. Electronics sells one of its 27-inch screen TV’s for $300. The fixed cost for producing this type of TV is $125 000. The variable cost per unit is $175
d. How many more TVs (% increase) must J.W. Electronics sell to make a profit of $62,500 if it decides to reduce its sales price to $275? Show your calculations. Only list the incremental % increase in the final input cell.
e. Assume that J.W. Electronics decides to reduce its selling price to $275, but that one of its suppliers then increases the cost of the glass to make TV screens by $10 per TV. More bad news: the landlord increases the rent for J.W.’s office space by $5,000. Based on these two developments, what is the company’s new break-even point in units? Show your calculations.
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