roove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. sales price 443.00 per unit. variable cost 203.00 per unit. fixed costs 715,000 assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other. [a] What will the operating profit be? [b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent? [c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty? [d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year
Groove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.
sales price 443.00 per unit.
variable cost 203.00 per unit.
fixed costs 715,000
assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other.
[a] What will the operating profit be?
[b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent?
[c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty?
[d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year
Kindly solve b c and d
Step by step
Solved in 6 steps
