Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are$350,000 per year. The company currently sells 150,000 bottles for $6.50 whichresults in profit of $175,000. The company is considering raising the selling price to$6.75 per bottle which is expected to decrease sales by 5%. If the price is raisedprofits are expected to(increase/decrease) by $per year. (Enter the profit increase or decrease as a wholenumber.)

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Miracle Clean's variable costs are…

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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Blossom Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $105 each and have a variable cost per unit of $71. Fixed costs, including depreciation and amortization, are currently $180,000 per year. How much can either the fixed costs or the variable cost per unit increase before the company has a negative EBIT. (Round increase in fixed cost to 0 decimal places, e.g. 5,275 and variable cost to 2 decimal places, e.g. 15.25.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Fixed costs could increase by $ and variable costs could increase by $ per unit
Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. a. Calculate Night Shades' Breakeven point. b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? c. Night Shades' manager expects an operating profit of $200,000, How many sunglasses must be sold to attain this profit?
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Stratford Company distributes a lightweight lawn chair that sells for $ 40 per unit . Variable expenses are expenses total $ 672,000 annually . 40\% of sales , and fixed Required : Answer the following independent questions : 1. What is the product's CM per unit ?Refer to the original data . Assume that the company sold 44,000 units last year . The sales manager is convinced that a 7 % reduction in the selling price , combined with a increase in advertising expenditures , would increase annual unit sales by . Prepare two contribution format income statements : one showing the results of last year's operations , and one showing what the results of operations would be if these changes were made . ( Do not round intermediate calculations . Round " Per Unit " answers to 2 decimal places . ) 30\% Answer is not complete . Last Year Proposed Total Per Unit Total Per Unit Sales Less Variable expenses Contribution margin $ 24.00 $ 7.00 Less Fixed expenses Net operating income 5 - b . Would you…
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Stratford Company distributes a lightweight lawn chair that sells for $15 per unit. Variable expenses are 40% of sales, and fixed expenses total $198,000 annually.Required:Answer the following independent questions:1. What is the product’s CM per unit?2. Use the CM per unit to determine the break-even point in units.3. The company estimates that sales will increase by $45,000 during the coming year due to increased demand. By how much should net operating income increase?

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