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Chapter 3 Graded Homework 4 Derby Phones is considering the Introduction of a new model of headphones with the following price and cost characteristics: Sales
Chapter 3 Graded Homework 4 Derby Phones is considering the Introduction of a new model of headphones with the following price and cost characteristics: Sales price 22 per unit points Variable costs 7 per unit Fixed costs 24, 680 per month Skipped Assume that the projected number of units sold for the month Is 6.500. Consider requirements (b). (c). and (o) Independently of each ther. Book Required a. What will the operating profit be? Print Operating profit References b. What Is the Impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calculations.) Sales price decreases by 10 percent: Operating profit by Sales price increases by 20 percent: Operating profit by C. What is the Impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? (Do not round Intermediate calculations.) Variable costs per unit decrease by 10 percent: |Operating profit by Variable costs per unit increase by 20 percent: Operating profit by d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What Impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? (Do not round intermediate calculations.) Operating profit by
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