Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assignment 4 - Multi product CVP Tony's Piano shop sels 3 types of Keyboards to musicians Yamaha and Casio and Sharp Information relating to the
Assignment 4 - Multi product CVP Tony's Piano shop sels 3 types of Keyboards to musicians Yamaha and Casio and Sharp Information relating to the three products for the next month follows: Yamaha Casio Sharp Expected sales (units) 1,000 400 200 Sales price $1,500 $120 $200 $80 $600 $50 Variable cost CM FC NET PROFIT The company has monthly fixed costs of $100,000 and a tax rate of 20% Required: a.) Compute the company's expected profit (net income) for the upcoming fiscal period. b.) Compute the company's sales mix C.) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? d.) Assuming a consistent sales mix, if the company wishes to earn monthly net income of $250,000, how many units of each product type must be sold? e.) Compute the margin of safety in both dollar and percentage terms. formula 1.) If Selling prices go up by 20% what is the new Net Profit and break even point. separate calculation on tables
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started