The sales price per unit under the existing conditions utilising the equations. Given information: Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

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Answer 1

Question

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

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Answer 2

Question

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Answer 6

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

Answer 7

Chapter 3, Problem 13ESB

a)

To determine

The sales price per unit under the existing conditions utilising the equations.

Given information:

Company G presently produces and sells the products of 20,000 units yearly, which has fixed costs of $420,000 and the variable cost of $8 per unit. The firm gains a yearly profit of $180,000. It is assumed that Company G has the chance to invest in new machine, which will able the company to decrease the variable costs to $7 per unit. The investment will lead the fixed costs to rise to $10,000 due to the cost of additional depreciation.

Answer 8

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Answer 9

b)

To determine

The contribution margin income statement=and recommend whether Company G can invest in new technology.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3 - Prob. 1LO Ch. 3 - Prob. 2LO Ch. 3 - Prob. 3LO Ch. 3 - Prob. 4LO Ch. 3 - Prob. 5LO Ch. 3 - Prob. 6LO Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - Prob. 3Q Ch. 3 - 4. If Company A has a projected margin of safety...

The contribution margin income statement=and recommend whether Company G can invest in new technology.

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