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5. 7. Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ
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Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold. Larry Company incurs $1,180,000 in fixed costs per month. The following information is also provided: MY Sales per unit Variable Cost per unit CM per unit Model ABC $470 $250 $220 Model XYZ $720 $300 $420 How many units of Model XYZ would the company need to sell at its breakeven point? (Round intermediary calculations to two decimal places and the final answer to the nearest unit.) O A. 3,688 units O B. 2,082 units OC. 3,471 units OD. 2,213 units Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $17,500. The monthly target operating income is $10,500. What is the monthly margin of safety in dollars if Yellow Company achieves its operating income goal? O A. $15,000 O B. $28,000 OC. $40,000 OD. $65,000 Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $49,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $23,000,000 for the golfing season. About 400,000 golfers are expected each year Variable costs are about $15 per golfer. 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? O A. $72.50 O B. $87.20 OC. $15.00 OD. $137.20Step by Step Solution
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