1.) If a company wishes to obtain a $400,000 profit on sales this coming year, what level of sales need obtain given the following previous year information (which is expected to remain constant for the upcoming year):

- Advertising $1,000,000

- Selling & Admin exp. $1,600,000

- Plant & Equip exp. $2,500,000

- Cost of goods sold $2,240,000 (Based on volume of 448,000 units)

- Selling price $16.00

a. $500,000

b. $8,000,000

c. $463,636

d. $7,418,182

2.) Giant Eagle Potato Chips come in three sizes. Calculate the average price per ounce for Giant Eagle Potato Chips using the information below.

15% of purchases are in the 2.25 oz. size at $0.385 per package

47% of purchases are in the 7 oz. size at $1.240 per package

38% of purchases are in the 11 oz. size at $1.7321 per package

Average Price per ounce is ____________________ (use 4 decimal places for answer)

Average price per pound is__________________________

3.) A company is planning to reduce the price on its entire line of skateboards by 3%. Given the following information, calculate the sales volume (in dollars) the company needs to retain it 2% profit percentage (as a percent of sales) with the planned price reduction. (Note: unit variable and fixed costs will remain constant.)

Previous year Sales

Sales Volume 120,000 Units

Contribution Margin .35 (35%)

Fixed costs $6,840,000

Net Profits $360,000 Answer: _________________

4.) If a firm has $11,500,000 in sales, profits of 8.5% of sales, and a contribution margin of 45 percent, what are its total fixed costs?

Answer: _______________________________