Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 320 $ 485 Variable cost per watch $ 240 $ 245 Expected sales (watches) per year 36,000 12,000 The total fixed costs per year for the company are $1,507,200. Required: 1. What is the anticipated level of profits for the expected sales volumes? 1. Anticipated Profit? 2. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. 1. Break-even point? 3. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? 1. Break-even point?

Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 320 $ 485 Variable cost per watch $ 240 $ 245 Expected sales (watches) per year 36,000 12,000 The total fixed costs per year for the company are $1,507,200. Required: 1. What is the anticipated level of profits for the expected sales volumes? 1. Anticipated Profit? 2. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. 1. Break-even point? 3. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? 1. Break-even point?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Hareshbhai
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 270 $ 460 Variable cost per watch $ 190 $ 220 Expected sales (watches) per year 21,000 7,000 The total fixed costs per year for the company are $1,459,200. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? A) What is the anticipated level of profits for the expected sales volumes? B) Assuming that the product mix is the same at the break-even point, compute the break-even point in units. Break-even point? units C) If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new…
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 450 $ 550 Variable cost per watch $ 370 $ 310 Expected sales (watches) per year 75,000 25,000 The total fixed costs per year for the company are $1,632,000. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
Gadubhai
011.
How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit of $54000, variable costs are 20% and monthly fixted cost of $18000 and what is the margin of safety percentage of target sales?
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount to
4. Assume you are the logistics manager of Apple and need to get 2000 latest MacBook (Retails at $2000 each) to market. Choices include: Rail, cost $1000 and takes a week Air, cost $5000 and take a day Which would you choose? Assume the yearly profit as 10% of sales. Hint – Find cost incurred by the manufacturer per day based on yearly profit. Use that value to find the total cost for each shipping method (shipping charge plus daily costs).
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The Widget Co. currently sells 800 widgets per week for a price of $7.00 each. Their market research indicates that for each $0.50 increase in price they will sell 25 fewer widgets per week. What price should they charge to maximize sales income?