Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

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Answer 1

Question

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

b)

To determine

Find the break-even sales (units) based on the part (a).

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

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Answer 2

Question

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

b)

To determine

Find the break-even sales (units) based on the part (a).

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

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Answer 3

Question

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

b)

To determine

Find the break-even sales (units) based on the part (a).

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

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Answer 4

Question

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

b)

To determine

Find the break-even sales (units) based on the part (a).

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

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Answer 5

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

b)

To determine

Find the break-even sales (units) based on the part (a).

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

Answer 6

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

Answer 7

Chapter 20, Problem 1AP

a)

To determine

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

Answer 8

b)

To determine

Find the break-even sales (units) based on the part (a).

Answer 9

b)

To determine

Find the break-even sales (units) based on the part (a).

Answer 10

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

Answer 11

c)

To determine

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

Answer 12

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

Answer 13

d)

To determine

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 20 - Prob. 1STQ Ch. 20 - Prob. 2STQ Ch. 20 - Prob. 3STQ Ch. 20 - Prob. 4STQ Ch. 20 - Prob. 5STQ Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - 5. Define the relevant range of activity.

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

Find out the sales price per unit if Company I sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.

Find the break-even sales (units) based on the part (a).

Find the margin of safety (in $), in case the company produces and sells 60,000 units at the sales price computed in pert (a).

Explain whether setting the sales price at $60 enable the company to break-even by manufacturing and selling 60,000 units, where the price of this product should not be higher than $60 to ensure market penetration.

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Chapter 20 Solutions