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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 a) Based on the above information, what is the break-even point in units? show calculations b.       The competition has reduced its price on a similar TV to $275. J.W. Electronics is considering reducing its selling price to $275 to compete.  Find the new break-even point if the sales price is reduced to $275.  Show your calculations    c)  Calculate the profit realized by J.W. Electronics on the sale of 1,500 TVs if it keeps its selling price at $300.   Show your calculations.

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 a) Based on the above information, what is the break-even point in units? show calculations b.       The competition has reduced its price on a similar TV to $275. J.W. Electronics is considering reducing its selling price to $275 to compete.  Find the new break-even point if the sales price is reduced to $275.  Show your calculations    c)  Calculate the profit realized by J.W. Electronics on the sale of 1,500 TVs if it keeps its selling price at $300.   Show your calculations.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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 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

a) Based on the above information, what is the break-even point in units? show calculations

b.       The competition has reduced its price on a similar TV to $275. J.W. Electronics is considering reducing its selling price to $275 to compete.  Find the new break-even point if the sales price is reduced to $275.  Show your calculations

   c)  Calculate the profit realized by J.W. Electronics on the sale of 1,500 TVs if it keeps its selling price at $300.   Show your calculations.

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