Question 2 Johnny looks forward to selling 40 units of LINDO software at an IE fair. The selling price per piece is $200, while variable cost is $120 per unit and fixed cost is $2,00 He believes that, by additional brochures, sales will increase by 10% (equivalent to 44 software units sold in total), but fixed costs will also increase to $2,500. 1. How many pieces of software should Johnny sell to break-even (consider no additional brochures)? Round up your answer to the nearest integer. nits -How many pieces of software should Johnny sell to break-even (consider additional brochures)? Round up your answer to the nearest integer. How much is the expected break-even sales given the break-even points (consider additional brochures)? Express your answer in whole numbers. llars Should Johnny sell all the pieces he expects, how much would his profit be without additional brochures? Express your answer in whole numbers. ars

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 2
Johnny looks forward to selling 40 units of LINDO software at an IE fair. The selling price per piece is $200, while variable cost is $120 per unit and fixed cost is $2,000.
He believes that, by additional brochures, sales will increase by 10% (equivalent to 44 software units sold in total), but fixed costs will also increase to $2,500.
1. How many pieces of software should Johnny sell to break-even (consider no additional brochures)? Round up your answer to the nearest integer.
units
2. How many pieces of software should Johnny sell to break-even (consider additional brochures)? Round up your answer to the nearest integer.
3. How much is the expected break-even sales given the break-even points (consider additional brochures)? Express your answer in whole numbers.
dollars
4. Should Johnny sell all the pieces he expects, how much would his profit be without additional brochures? Express your answer in whole numbers.
dollars
units
Transcribed Image Text:Question 2 Johnny looks forward to selling 40 units of LINDO software at an IE fair. The selling price per piece is $200, while variable cost is $120 per unit and fixed cost is $2,000. He believes that, by additional brochures, sales will increase by 10% (equivalent to 44 software units sold in total), but fixed costs will also increase to $2,500. 1. How many pieces of software should Johnny sell to break-even (consider no additional brochures)? Round up your answer to the nearest integer. units 2. How many pieces of software should Johnny sell to break-even (consider additional brochures)? Round up your answer to the nearest integer. 3. How much is the expected break-even sales given the break-even points (consider additional brochures)? Express your answer in whole numbers. dollars 4. Should Johnny sell all the pieces he expects, how much would his profit be without additional brochures? Express your answer in whole numbers. dollars units
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