The cost of a window air conditioner was $420 and had a markup on cost percentage of 45%. During a spring promotion, the selling price was reduced by $70. The required overheads and operating profit for the air conditioner are 35% and 10% of cost respectively For full marks your answer(s) should be rounded to the nearest cent. a) What is the regular selling price? Regular price = $ 0.00 b) What is the profit (loss) at the sale price? Profit on sale price = $ 0.00 c) What is the break-even price? Break-even price = $ 0.00

The cost of a window air conditioner was $420 and had a markup on cost percentage of 45%. During a spring promotion, the selling price was reduced by $70. The required overheads and operating profit for the air conditioner are 35% and 10% of cost respectively For full marks your answer(s) should be rounded to the nearest cent. a) What is the regular selling price? Regular price = $ 0.00 b) What is the profit (loss) at the sale price? Profit on sale price = $ 0.00 c) What is the break-even price? Break-even price = $ 0.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Reveen Products sells camping Equipment. One of the company'sproducts a camping lantern, sells for $ 90 a unit. Variableexpenses are $ 63 per lantern, and fixed expenses associated withthe lantern total $ 135,000. per month. Required: A: compute the company's break even point in number of lanternsand in number of lanterns and in total sales dollars. B: If the variable expenses per lantern increase as a percentageof the selling price, will it result in a higher or lower breakeven point? Why? (Assume that the fixed expenses remainunchanged) C: At present the company is selling 8,000 per month. The salesmanager is convinced that a 10% reduction in the selling price willresult in a 25% increase in the number of lanterns sold each month.Prepare two contribution income statements, one under presentoperating conditions and one as operations would appear after theproposed changes. Sho both total and per unit data on yourstatements and determine if the proposed changes will be beneficialto…
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