Question
1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation
1.Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs.(Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
2.Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 85,000 units are sold during the year.(Round "Break-even sales" answer to nearest whole number.)
3.Calculate the change in profit if the selling price were reduced by $12.50 each and annual sales were to increase by 8,200 units.
4.Determine the change in profit if the company were to increase advertising by $116,000 and if this were to increase sales by 8,200 units.
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