The Warren Watch Compony sells watches for $25, fixedCosts are $170,000, and variable costs are$15 per watch!watchili1ngay20a) What is the firm's gain or loss at sales st.of 10,000 watches & Loss, if any, should be indicatedby a minus sign. Round your answer to the nearestcent.$NOM MAX 250Seb(2BekWhat is the firm's gain or loss at sales of 18,000watches? Loss, if any, should be indicated by aminus sign. Round your answer to the nearest cent. (stb) What is the break-even point Cunit sales)? Roundyour answer to the nearest whole number.SlowEHMNY2.3

Break even point is where there is no loss or no profit and all cost variable cost and fixed cost…

Answered: The Warren Watch Company sells watches…

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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Morgan Technologies sells a single product at $30 per unit. The firm's most recent income statement revealed unit sales of 70,000, variable costs of $630,000, and fixed costs of $360,000. If a $6 drop in selling price will boost unit sales volume by 20%, the company will experience: Multiple Choice O O no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume. an $47,000 drop in profit. a $210,000 drop in profit. a $360,000 drop in profit. None of the answers is correct.
Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 30,000 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $23 Unit manufacturing costs: Variable 10 Fixed 5 What is the amount of income or loss from the acceptance of the offer? Oa. $300,000 loss Ob. $690,000 loss Oc. $570,000 income Od. $270,000 income Previous Next 7:36 PM CP 12/13/2020
In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units units
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? Oa. $1 Ob. $3 Oc. $0 Od. $2
Rancor Electronics sells 6,000 mp3 players and earns Tk.3.0 million in revenues. Rancor's variable costs are Tk.500,000 and its fixed operating costs are Tk.1.52 million. a. How many mp3 players does Rancor have to sell to recover all its operational costs? b. Can Rancor earn a larger increase in operating income by making a smaller increase in sales? Explain. c. Suppose Rancor has Tk.1.2 million in debts at a 12 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?
Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.
The Tick Tock Clock Company sells a particular clock for $75. The variable costs are $15 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 355 clocks, what effect would the sale of additional 75 clocks have on operating income? Explain your answer The sale of an additional 75 dlocks would aller an. operating income by the amount of The total effect would amount to 4
Maple Enterprises sells a single product with a selling price of $87 and variable costs per unit of $26. The company's monthly fixed expenses are $15,356. What dollar sales will Maple need in order to reach a target profit of $26,540? Round to the nearest whole dollar, no decimals.
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
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Rancor Electronics sells 5,000 mp3 players and earns Tk.2.5 million in revenues. Rancor’s variable costs are Tk.600,000 and its fixed operating costs are Tk.1.52 million. How many mp3 players does Rancor have to sell recover all its operational costs? Can Rancor earn a larger increase in operating income by making a smaller increase in sales? Suppose Rancor has Tk.1 million in debts at a 10 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?

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