Question
Annual costs for the following manufacturer of custom glass candle holders are as follows: Direct Materials$18.50per unit Production Supplies$1.10per unit Depreciation$36,000fixed Advertising$45,000fixed Direct Labor$4.25per unit
Annual costs for the following manufacturer of custom glass candle holders are as follows:
Direct Materials$18.50per unit
Production Supplies$1.10per unit
Depreciation$36,000fixed
Advertising$45,000fixed
Direct Labor$4.25per unit
Selling Costs$2.80per unit
Other Fixed Costs$11,400fixed
Other Variable Costs$1.95per unit
The product is expected to be sold for $55.00 each.
How many candle holders must the company sell to break even?
How many candle holders must the company sell to earn a profit of $70,224?
If advertising costs rise by $40,000, how many products must be sold to earn a profit of $139,520?
Assuming the original information in the instructions to this quiz, and sales volume of 10,000 units, what price must the company charge to earn a profit for the year of $131,600?
Assuming the original information in the instructions to this quiz, and sales volume of 15,000 units, how much MORE can the company spend on advertising to earn a profit of $251,000, assuming selling price is lowered to $52.00.
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