Washington Corporation sells a product for $400per unit. Its market share is 35 percent of theunits sold. The marketing manager believes thatthe market share can be increased to 40 percentof the units sold with a reduction in price to$350. The product is currently earning a profit of$60 per unit. The president of WashingtonCorporation believes that his company needs tomaintain the same profit level per unit. The totalmarket for the product has annual sales of12,500 units.a) How many dollars does WashingtonCorporation currently sell of the product eachyear?b) What is the target price per unit?c) What is the target cost per unit?

a) How many dollars does Washington Corporation currently sell of the product each year?First,…

Answered: Washington Corporation sells a product…

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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Accents Associates sells only one product, with a current selling price of $160 per unit. Variable costs are 20% of this selling price, and fixed costs are $40,000 per month. Management has decided to reduce the selling price to $155 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $160 per unit, the dollar volume of sales per month necessary for Accents to break-even is: $250,000 $50,000 $40,000 Some other amount. Please answer fast i give you upvote.
The Saline Company produces and sells rock salt. its annual fixed cost was $10,000. during the past year, the company sold 8,000 bags of its product. it estimates that at this level of sales its degree of operating leverage is 1.5.a) how much was saline’s profit last year? b) at which level of production would the company just break-even?
Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business How many customers must you get to breakeven? How many customers must you get to make a 10% operating profit? how would the income statement for this to be presented per unit sale $? per unit cost of sale number of customers needed to make 10% profit total sales $$ total cost of sales gross profit marketing investment operating profit operating profit margin in % ROI
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The fixed costs of Anton, Inc. are $354,000 and the total variable costs for its only product are 45% of the sales price, which is $140. Anton currently sells 5,700 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager thinks sales are too low in Georgia and suggests that sales there would be increased by 240 units per month if an additional $8,000 per month was spent advertising there. What should be the effect on monthly income if this additional advertising is done? (Increase by 10480, 7120, 447905, or 5645?) Part B Management is considering adding a new feature to its product that will cause an increase in variable costs of $9 per unit. It is expected that sales will increase by 710 units per month if this feature is added. If the feature is added, what should be the overall effect on the company's monthly income? (Decrease by 3020, 12,960, 3519, or increase by 48280?) Part C The marketing manager is considering…
Based on the facts of Easy Problems Corp. With an average monthly sales of 11,000 units, the corporation's margin of safety is
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Esme Company’s management is trying to decide whether to eliminate Department Z, which has produced low profits or losses for several years. The company’s departmental income statements show the following.

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