A product at the Jennings Company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. Last year, 14,500 units were produced and sold. The selling price is $23 per unit, the variable cost is $16 per unit, and the fixed cost is $133,000. a. What is the break-even quantity for this product? Use both graphic and algebraic approaches to get your answer. A The break-even quantity according to the algebraic approach is Q= response as an integer.) To obtain the result with the graphic approach, plot the following: 1.) Using the line drawing tool, draw the total cost line. Properly label the line. 2.) Using the line drawing tool, draw the total revenue line. Properly label the line. 3.) Using the point drawing tool, plot the point that corresponds to the break-even quantity. Label this point 'Q'. Carefully follow the instructions above, and only draw the required objects. I b. If sales were not expected to increase, by how much would Jennings have to reduce their variable cost to break even? units. (Enter your The variable cost would have to reduce from $16 to $ per unit. (Enter your response rounded to two decimal places.) c. Jennings believes that a $1 reduction in price will increase sales by 50 percent. Is this enough for Jennings to break even? If not, by how much would sales have to increase? The sales have to be increased by at least %. (Enter your response rounded to the nearest whole number.) d. Jennings is considering ways to either stimulate sales volume or decrease variable cost. Management believes that either sales can be increased by 35 percent or that variable cost can

A product at the Jennings Company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. Last year, 14,500 units were produced and sold. The selling price is $23 per unit, the variable cost is $16 per unit, and the fixed cost is $133,000. a. What is the break-even quantity for this product? Use both graphic and algebraic approaches to get your answer. The break-even quantity according to the algebraic approach is Q= units. (Enter your response as an integer.) To obtain the result with the graphic approach, plot the following: 1.) Using the line drawing tool, draw the total cost line. Properly label the line. 2.) Using the line drawing tool, draw the total revenue line. Properly label the line. 3.) Using the point drawing tool, plot the point that corresponds to the break-even quantity. Label this point ' Q '. Carefully follow the instructions above, and only draw the required objects. b. If sales were not expected to increase, by how much would Jennings have to reduce their variable cost to break even? The variable cost would have to reduce from $16 to $ per unit. (Enter your response rounded to two decimal places.) c. Jennings believes that a $1 reduction in price will increase sales by 50 percent. Is this enough for Jennings to break even? If not, by how much would sales have to increase? The sales have to be increased by at least \%. (Enter your response rounded to the nearest whole number.) d. Jennings is considering ways to either stimulate sales volume or decrease variable cost. Management believes that either sales can be increased by 35 percent or that variable cost can 3. Using the point draning fook plot the point that cossesposds to the breat-even quantly. Label this point g Conetaly follow the inctructions above, and ony draw the required objech. b. If sales were not expected to incresse, by how much would Jerinings have to reduce their vanable cost to broak eveen? The varisble cost would have to redace from $16 ta 4 per unit. IEnher your rosiponse roundod as ho decimal places J c. Jennings boleves that a $1 reduction in price wil increase sales by 50 percert is this enough for Jennings to beak even? If not, by how much would salss hwve to increase? The sales have to be increased by of least whole number) 6. Finder your rosposie rounded to the nearest d. Jennings is considening ways to either stimulabe sales volume or decresse variable cest Managoment believes that eibier sales can be increased by 35 petcent or that variable cost can be reduced to 55% of its current level. Which ahernative leads to higher contribvions p proffs, assuming that each is equally cosify to implement? fint Calculate peofis for both alserthatives and identify the one haveng the greatest profis ] The proft acxording to alemative 1 finerease in sabs) is 5 . The proft according to atomative 2 (cost reduction) is i Thus, leads to higher profins. (Enider your responses rounded to the noarest dolfar) e. What is the percent change is the ptr-unt prolt contrbution generated by each alsernative in part (d)? The percentage chainge for altemative 1 (incresse in salea) is 6. The persentage change for atemative 2 (oost reduction) is S. (Enter your rosponses rounded to one decinal plince) A product at the Jennings Company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. Last year, 14,500 units were produced and sold. The selling price is $23 per unit, the variable cost is $16 per unit, and the fixed cost is $133,000. a. What is the break-even quantity for this product? Use both graphic and algebraic approaches to get your answer. The break-even quantity according to the algebraic approach is Q= units. (Enter your response as an integer.) To obtain the result with the graphic approach, plot the following: 1.) Using the line drawing tool, draw the total cost line. Properly label the line. 2.) Using the line drawing tool, draw the total revenue line. Properly label the line. 3.) Using the point drawing tool, plot the point that corresponds to the break-even quantity. Label this point ' Q '. Carefully follow the instructions above, and only draw the required objects. b. If sales were not expected to increase, by how much would Jennings have to reduce their variable cost to break even? The variable cost would have to reduce from $16 to $ per unit. (Enter your response rounded to two decimal places.) c. Jennings believes that a $1 reduction in price will increase sales by 50 percent. Is this enough for Jennings to break even? If not, by how much would sales have to increase? The sales have to be increased by at least \%. (Enter your response rounded to the nearest whole number.) d. Jennings is considering ways to either stimulate sales volume or decrease variable cost. Management believes that either sales can be increased by 35 percent or that variable cost can 3. Using the point draning fook plot the point that cossesposds to the breat-even quantly. Label this point g Conetaly follow the inctructions above, and ony draw the required objech. b. If sales were not expected to incresse, by how much would Jerinings have to reduce their vanable cost to broak eveen? The varisble cost would have to redace from $16 ta 4 per unit. IEnher your rosiponse roundod as ho decimal places J c. Jennings boleves that a $1 reduction in price wil increase sales by 50 percert is this enough for Jennings to beak even? If not, by how much would salss hwve to increase? The sales have to be increased by of least whole number) 6. Finder your rosposie rounded to the nearest d. Jennings is considening ways to either stimulabe sales volume or decresse variable cest Managoment believes that eibier sales can be increased by 35 petcent or that variable cost can be reduced to 55% of its current level. Which ahernative leads to higher contribvions p proffs, assuming that each is equally cosify to implement? fint Calculate peofis for both alserthatives and identify the one haveng the greatest profis ] The proft acxording to alemative 1 finerease in sabs) is 5 . The proft according to atomative 2 (cost reduction) is i Thus, leads to higher profins. (Enider your responses rounded to the noarest dolfar) e. What is the percent change is the ptr-unt prolt contrbution generated by each alsernative in part (d)? The percentage chainge for altemative 1 (incresse in salea) is 6. The persentage change for atemative 2 (oost reduction) is S. (Enter your rosponses rounded to one decinal plince)