Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acme Corp has fixed has fixed overhead of $500,000 for its plant and salaries of $300,000. It sells high quality industrial values for $110 each,

Acme Corp has fixed has fixed overhead of $500,000 for its plant and salaries of $300,000. It sells high quality industrial values for $110 each, which is $10 more than its competitors. Variable productions costs are $50 and shipping costs are $10 per unit. Last year Acme sold 25,000 units. This year Acme sold 30,000 units. Total industry unit sales this year were 100,000.

1. What is Acmes year-on-year growth(%)?

2. What is Acmes price premium?

3. What is Acmes unit market share?

4. What is Acmes dollar market share?

5. What is Acmes breakeven unit volume?

6. Acme believes it will have a contribution margin of 50% next year and wants to earn a profit of $1,000,000. What will its target revenue be if it can keep its fixed costs at existing levels

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Understanding Group Leadership Culture and Group Leadership

Answered: 1 week ago