The following information pertains to MacKenzie Corp. Sales of 22,500 units for $900,000, Fixed Expenses are $350,000 and theBreak-even Point is $700,000. If sales price were to decrease by 5% and variable expenses were to increase by $2.00 per unit, whichof the following is true?○ The new selling price is $36 per unit○ The new break-even point is $831,250○ The new variable expenses are $18 per unit○ The new break-even point is 21,750 unitsO none of the above

The objective of the question is to determine the new selling price, the new break-even point, the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ulpik Inc. has variable operation costs of $10 per unit, a selling price of $75,50 per unit and fixed operating costs of $250,000. a) Calculate the operating breakeven point in units. b) Calculate the firm's EBIT at a level of units sold of 24,000; 28,000; and 30,000 units respectively. c) With 28,000 units as a base, what are the percentage changes in units sold and EBIT, as sales move from the base to the other levels used in part b)? d) Use the percentages computed in part c) to determine the degree of operating leverage (DOL).
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1. The sales volume of a company is one million dollars per month. If the company spends ($350,000.) per month as fixed costs, and the variable costs are equal to ($0.5) of each dollar. To check sales, it is required: A - Determine the corresponding volume of production, the equilibrium cat? B - What is the effect of reducing variable costs by 25% on the net profit, if that increase was the result of updates in production lines that caused an increase in fixed costs by 10%. Note that sales volume will not change? C- What is the effect of reducing fixed costs by (10%) on the net profit, if that reduction is Will it cause an increase in variable costs by a similar percentage, knowing that the sales volume will not change?
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please answer my question quickly. Thanks
Your Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable expenses are $4.50 per unit. What is the selling price?
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