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1- Total fixed cost of a carpet manufacturing company is $280000. Variable cost per carpet is $80, and unit selling price of the carpet
1- Total fixed cost of a carpet manufacturing company is $280000. Variable cost per carpet is $80, and unit selling price of the carpet is $150. a- How many carpets must the business sell to be at the breakeven point? b- What is the company's sales revenue at breakeven point? c- If management wants to earn a profit of $350000, how many carpets must the company sell? d- Suppose that total fixed cost of the company increase by $40000 variable cost per carpet doesn't change selling price per carpet doesn't change Company sold 600 carpets in both cases Compare the contribution margin of two cases? (does it increase or decrease?) e- Suppose that variable cost per carpet increase by $10 total fixed cost of the company increase by $20000 selling price per carpet doesn't change Company sold 700 carpets How much would the company's sales profit be in new case? f- Suppose that total fixed cost increase by 50%. variable cost per carpet increase by 50% selling price per carpet increase by 50% Company sold 2000 carpets in both cases Compare the contribution margin of two cases
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