Question
.A company manufacturing toys has a fixed cost of $100,000. Variable cost is 6 per toy.Selling price is $10 per toy. Company target profit is
.A company manufacturing toys has a fixed cost of $100,000. Variable cost is 6 per toy.Selling price is $10 per toy. Company target profit is $120,000.
a.How many toys should be sold to reach the target profit?
b.The company found that its variable cost is going to increase by $2 and plans to raise its selling price by $3 and reduced the fixed costs by $20,000. How many more (less) toys have to be sold at the new price to reach the target profit of $120,000?
c. What is the markup (profit margin %) on sales price at this new sales volume? What is the markup (profit margin %) on total cost?
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