Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

31 - X TA SP III. Thames Thimepieces is world famous for its precision wristwatches. The company estimates Each watch sells for 450 Variable manufacturing

image text in transcribed
31 - X TA SP III. Thames Thimepieces is world famous for its precision wristwatches. The company estimates Each watch sells for 450 Variable manufacturing costs VC-MFG 38 Variable selling costs VC-SELL 44 Fixed manufacturing costs FC-MFG L 328,900 Fixed G&A expenses FC-G&AL 241,500 a Calculate beakeven in sales units. b Calculate breakeven in sales dollars. What is the CM ratio? d How many units have to be sold to make a profit 1 92,000 S e Going back to the original equation, find the new break-even if If variable costs increase by + VC If fixed costs increase by + FC 88,200 mm f Calculate new breakeven sales dollars. wN 5 g What is the new CM ratio? h Using the information in (e) above, how many units will the company have to sell in order to make to make a profit L 35,600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Politics Of Public Management The HRDC Audit Of Grants And Contributions

Authors: David A. Good

2nd Edition

0802085873, 978-0802085870

More Books

Students also viewed these Accounting questions