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Abusiness is operating at 90% of capacity andis currently purchasing a part used in its manufacturing operations for $15 $20, including fixed costs and $12,
Abusiness is operating at 90% of capacity andis currently purchasing a part used in its manufacturing operations for $15 $20, including fixed costs and $12, ot including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? 4 The unit cost for the business to make the part is 80.000 q0,000 decrease sks for $1.50 er disk. Unit variable expenses to 5. Gould Enterprises sells computer di $.90The breakeven point in un margin of safety in dollars? difHerua s br catuven 6. Jackson Company has provided the following information regarding the two products that it sells: batsTennis Rackets 8,000 34,800 $20,000 Varisble cost per unit costs: $289,000 3,20 $289,000 Xsi8 3, aeo, apco, +e.co. aso: 4.2so How many units must be sold in order for Jackson to breakeven assuming that Jackson sells five Baseball bats for every three Tennis Rackets sold? 3 43 Hill colf course is planning for the coming season. Investors would like to earn a 10% return on the company's $50 million of assets. The company primarily incurs fixed costs to groom the greens fairwa SM pr + and fairways. Fixed costs are projected to be $25,000,000 for the About 500,000 golfers re expected each year. Variable costs are about prht golfing season. A .coo ooo- s1 er golfer. The Burr Hill golf course has a favorable reputation in the area and ooo,ccfi therefore, has somecontrolover the price of a round or golf. Using a cost-plus approach, s.ouo oco C what should Burr Hill charge for a round of golf? what price
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