Question
1.Kane Corp has a selling price of $30, variable costs of $20 per unit, and fixed costs of $20,000. Kane expects profit of $310,000 at
1.Kane Corp has a selling price of $30, variable costs of $20 per unit, and fixed costs of $20,000. Kane expects profit of $310,000 at its anticipated level of production. If Kane sells 6,000 units more than expected, how much higher will its profits be?
2.The manager of Kzoo, Inc. is considering raising its current price of $34 per unit by 10%. If she does so, she estimates that demand will decrease by 20,000 units per month. Kzoo currently sells 51,400 units per month, each of which costs $21 in variable costs. Fixed costs are $186,000.
a.What is the current profit?
b. what is current break-even point in units?(Round your answer to the nearest whole number.)
c.If the manager raises the price, what will profit be?(Do not round intermediate calculations.)
d.If the manager raises the price, what will be the new break-even point in units?(Do not round intermediate calculations. Round your answer to the nearest whole number.)
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