Your organization sells tables for $200 each.The fixed cost is $25,000 per annum withcurrent demand at 700 tables per annum. Eachtable has a direct material cost of $65 anddirect labour cost of $83.Required:A. I) what is profit based on the current demand?i) How many tables should be sold toget a profit of $5,000?A. The organization is considering two alternativeproposals.i. Reducing selling price by 15% which isexpected to increase demand by 10%ii. Increase selling price by 5% which is expectedto reduce demand by 10%What will be the profits or loss under eachalternative proposal?

Selling price per table = $200 Fixed cost = $25,000 Current demand = 700 tables Direct material =…

Your organization sells tables for $200 each. The fixed cost is $25,000 per annum with current demand at 700 tables per annum. Each table has a direct material cost of $65 and direct labour cost of $83. Required: A. I) what is profit based on the current demand? i) How many tables should be sold to get a profit of S5,000? A. The organization is considering two alternative proposals. i. Reducing selling price by 15% which is expected to increase demand by 10% ii. Increase selling price by 5% which is expected to reduce demand by 10% What will be the profits or loss under each alternative proposal?

Your organization sells tables for $200 each. The fixed cost is $25,000 per annum with current demand at 700 tables per annum. Each table has a direct material cost of $65 and direct labour cost of $83. Required: A. I) what is profit based on the current demand? i) How many tables should be sold to get a profit of S5,000? A. The organization is considering two alternative proposals. i. Reducing selling price by 15% which is expected to increase demand by 10% ii. Increase selling price by 5% which is expected to reduce demand by 10% What will be the profits or loss under each alternative proposal?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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