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Breakeven/Profit Planning Analysis Instrument City. Inc., is a major producer of pipe organs, its Model D14 is a double-man- ual organ with a large potential

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Breakeven/Profit Planning Analysis Instrument City. Inc., is a major producer of pipe organs, its Model D14 is a double-man- ual organ with a large potential market. On the next page is a summary of data from 20xl operations for Model DI4. Variable costs per unit Direct materials Direct labor Manufacturing overhead Selling expense 2,300 800 600 500 Total fixed costs Manufacturing overhead Advertising Administrative expense 195,000 55,000 68,000 9,500 Selling price per unit 1. Compute the 20x1 breakeven point in units. 2. Instrument City sold sixty five D4 models in 20xl. How much net income did the 3. Management is considering alternative courses of action for 20x2. (Use the lgures firm realize? from 2 and treat each alternative independently) a. Calculate the number of units that must be sold to generate a net income of .Calculate the net income if the company increases the number of units sold by 20 c. Determine the number of units that must be sold to break even if advertising is d. Ifvariable costs are cut by 10 percent, find the number of units that must be sold to 95,400. Assume that costs and selling price remain constant. percent and cuts the selling price by $500 per unit. increased by $47,700 generate net income of $125,000

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