Right Air Supply sells a specialized air filter that has a variable cost of $10 each. Fixed costs are estimated to be $700,000 across all levels of sales shown below. Which price should Right Air Supply charge to maximize profits? Unit CM per unit x Units Sold Fixed Costs Profit Price Qty 90,000 $33 100,000 $31 700,000 700,000 110,000 $30 120,000 $28 700,000 700,000

Right Air Supply sells a specialized air filter that has a variable cost of $10 each. Fixed costs are estimated to be $700,000 across all levels of sales shown below. Which price should Right Air Supply charge to maximize profits? Unit CM per unit x Units Sold Fixed Costs Profit Price Qty 90,000 $33 100,000 $31 700,000 700,000 110,000 $30 120,000 $28 700,000 700,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

See similar textbooks

Similar questions

Using this information below, answer the following question: What is the CMRw? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices 0.70 0.30 0.20 0.50 DO not give answer in image
Using this information below, answer the following question: What is the Net Income required? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices $1,080,000 $1,010,000 $1,000,000 $1,090,000
ZWYCDL159 Corp. sells a single product. ZWYCDL159 wants to achieve a target income of $105,000 next year. $8 50% Price per unit Contribution margin ratio ID#84756) Annual fixed expenses $155,000 Q.) How many units of the product does ZWYCDL159 have to sell to achieve the target? A.) units
Nictus Limited produces electrical blankets. The blankets are sold for R 750 per unit and variable costs per unit are R350. Total fixed costs amount to R 500 000. The company expects to produce and sell 3000 units. Total net profit is: A. R1 200000 B. R700000 C. R500000 D. R2 250000 Clear my - choice
ACCOUNT
please post in general account
How do I calculate the contribution margin for this problem (E21-21)?
Please help me with show all calculation thanku
Please provide true solution for this general accounting question
How much Total sales are required to achieve a net income of 160000?
If the net operating income is $10,000, the gross margin is $40,000, and the cost of goods sold is $49,500, then the sales must be: Multiple Choice $99,500. $129,000. $89,500. $139,000.
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509