The third In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per unit, and the variable costs per unit amounted to 22 dollars, and the fixed costs for the company's fiscal year amounted to 10,000,000 dollars. What is the contribution margin? operating income? Did the company make profits or losses? Fourth A new manager was appointed for Al-Nawras Company in 2021 and this manager took a number of measures that led to an increase in production to 1,500,000 and an increase in the variable cost per unit by 25% over the previous year, and an increase in fixed costs by 50% over the previous year, and the price of Selling for $37. (The information for the previous year is the data for the third question) Is the manager's decision correct? Did his decision increase profits or reduce losses? Explain that

The third In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per unit, and the variable costs per unit amounted to 22 dollars, and the fixed costs for the company's fiscal year amounted to 10,000,000 dollars. What is the contribution margin? operating income? Did the company make profits or losses? Fourth A new manager was appointed for Al-Nawras Company in 2021 and this manager took a number of measures that led to an increase in production to 1,500,000 and an increase in the variable cost per unit by 25% over the previous year, and an increase in fixed costs by 50% over the previous year, and the price of Selling for $37. (The information for the previous year is the data for the third question) Is the manager's decision correct? Did his decision increase profits or reduce losses? Explain that

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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Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $836,100 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
Last year Minden Company introduced a new product and sold 25, 300 units of it at aprice of $99 per unit. The product's variable expenses are $69 per unit and its fixedexpenses are $837,300 per year. Required: 1. What was this product's net operatingincome (loss) last year? 2. What is the product's break - even point in unit sales anddollar sales? 3. Assume the company has conducted a marketing study that estimates itcan increase annual sales of this product by 5.000 units for each $2 reduction in itsselling price. If the company will only consider price reductions in increments of $2 (e.g$68, $66, etc.), what is the maximum annual profit that it can earn on this product?What sales volume and selling price per unit generate the maximum profit? 4. Whatwould be the break - even point in unit sales and in dollar sales using the selling pricethat you determined in requirement 3?
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