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CASE 1 If HP maintains the same real price and in effect sells for fewer dollars, the annual sales price per unit is equal to
CASE 1
If HP maintains the same real price and in effect sells for fewer dollars, the annual sales price per unit is equal to
($210R$3.50/$)R$4.00/$=$184.
The direct cost per unit is 60% of the sales, or
$2100.60=$126.
Calculate the gross profits for years 1 through 6 in the following table:(Round to the nearest dollar.)
Case 1 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
Sales volume (units) | 50,000 |
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Sales price per unit | $184 | $184 | $184 | $184 | $184 | $184 |
Total sales revenue |
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Direct cost per unit | $126 | $126 | $126 | $126 | $126 | $126 |
Total direct costs |
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Gross profits |
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