Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate c3. Calculate the preak-even point in unit sales assuming that iveptune plans to use all of its production capacity to produce the first19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units.4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also committo hiring the outside supplier to produce up to 17,000 additional units.Saveda. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a?b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month?c. How much profit will Neptune earn if it sells 36,000 units per month?d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus of 10 cerfor each unit sold above the break-even point from requirement 3?5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 36,000 units?Answer is complete but not entirely correct.1. Break-even point in unit sales - without hiring2a. Profit if produces and sells2b. Profit if outsources production and sells3. Break-even point in unit sales - hiring4a. Total unit sales4b. Total unit sales to achieve a target Profit of $13,5004c. Net operating income4d. Net operating income - bonus to marketing manager5. Net operating income - fully outsourced13,500 units$ 11,000$3,75029,500 units35,000units37,000 units$ 12,250$ 11,600 X$ 5,000Prev1 of 41wwwNext > SavedNeptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's MarketingDepartment estimates that demand for the new toy will range between 16,000 units and 36,000 units per month. The new toy will selfor $3.00 per unit. Enough capacity exists in the company's plant to produce 19,000 units of the toy each month. Variable expenses tomanufacture and sell one unit would be $1.00, and incremental fixed expenses associated with the toy would total $27,000 permonth.Neptune has also identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $20,000 permonth for any production volume up to 21,000 units. For a production volume between 21,001 and 41,000 units the fixed fee wouldincrease to a total of $40,000 per month.Required:1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier.2. How much profit will Neptune earn assuming:a. It produces and sells 19,000 units.b. It does not produce any units and instead outsources the production of 19,000 units to the outside supplier and then sells thoseunits to its customers.3. Calculate the break-even point in unit-sales assuming that Neptune plans to use all of its production capacity to produce the first19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units.4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commitsto hiring the outside supplier to produce up to 17,000 additional units.a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a?b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month?c. How much profit will Neptune earn if it sells 36,000 units per month?d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus of 10 centsfor each unit sold above the break-even point from requirement 3?5 If Nentune outsources all production to the outside supplier how much profit will the company earn if it sells 36.000 units?

CVP analysis is a method to determine how changes in costs and volume affect a company's operating…

Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. 2. How much profit will Neptune earn assuming: a. It produces and sells 19,000 units. b. It does not produce any units and instead outsources the production of 19,000 units to the outside supplier and then sells those units to its customers. 3. Calculate the break-even point in unit-sales assuming that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month? c. How much profit will Neptune earn if it sells 36,000 units per month? d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus of 10 cents for each unit sold above the break-even point from requirement 3? 5 If Neptune outsources all production to the outside supplier how much profit will the company earn if it sells 36 000 units?

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q