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4) Belton Company currently sells its products for S25 per unit. Management is contemplating a 20% increase in the sale price for the next year.

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4) Belton Company currently sells its products for S25 per unit. Management is contemplating a 20% increase in the sale price for the next year. Variable costs are currently 30% of sales revenue and are not expected tochange next year. Fixed expenses are $150,000 per year if fixed costs increase 10%next year, and the new sale price per unit goes into effect how many units will need to be sold to breakeven? (5 points) 5) Fairfield Company management has budgeted the following amounts for its nest fiscal year Total fixed expenses Sale Variable expenses per unit If Fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units What effect will this have on operating income? and by how much? (Spoints) 6) Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return an the company's $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways Fixed costs are projected to be $25,000,000 for the golfing season. About 400,000 golfers are expected each year Variable costs are about $8 per golfer. The Mountaintop golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Mountaintop charge for a round of golf? (5 points) 7) Jim Bean Company has three product lines D, E, and F. The following information is available $ 80,000 $42,000 Sales revenue Variable expenses Contribution margirn Fixed expenses Operating income (loss) 40 S40000$21,000 5 12.000$15.000 s 28,000 $ 8,000 s9,000) Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fisxed costs are unavoidable. Assuming Jim Bean Company discontinues line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operating income? 8) The Nut House sells almonds, cashews, and pistachios. They sol 10,00 cans last year Pistachis outsold cashews by a margin of 2 to 1 in cans. Sales of almonds were half the sales of cashews in cans Fixed costs for the Nut House are $20,000 and additional information follows Unit Variable Unit Sales Prices Cost S4. Product 5-Almonds s8 $10.0 S6.0 54.0 Pistachios What is the breakeven sales volume and dollars for each nut (rounded)? (10 points)

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