Question
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $4 and has a sales price of $9. The high-end model costs $8 and sells for $13. Fixed costs associated with this product line amount to $66,120. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the total break-even point (the total number of economy line plus the number of high-end clippers)? Note: Round your final answer to nearest whole number.
Multiple Choice
2,645 clippers
13,105 clippers
1,984 clippers
13,224 clippers
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $6 and has a sales price of $13. The high-end model costs $13 and sells for $22. Fixed costs associated with this product line amount to $66,120. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the break-even point for the high-end clippers?
Multiple Choice
2,645 clippers
6,090 clippers
2,610 clippers
8,700 clippers
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $6 and has a sales price of $13. The high-end model costs $13 and sells for $22. Fixed costs associated with this product line amount to $66,120. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the total number of clippers that must be sold to earn a $27,360 profit?
Multiple Choice
12,300 clippers
8,610 clippers
3,690 clippers
None of the answers are correct.
Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $6 and has a sales price of $13. The high-end model costs $13 and sells for $22. Fixed costs associated with this product line amount to $66,120. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Assume Clipper Company currently sells 12,300 units of clippers and earns a $27,360 profit. Management believes the profitability can be improved by shifting the sales mix to 60 percent share for the economy line and 40 percent for the high-end line. The company believes it can continue to sell a total of 12,300 under the new sales mix. If management is able to accomplish the shift in sales mix
Multiple Choice
profit will increase by $2,460.
profit will increase by $29,820.
profit will decrease $27,360.
profit will not be affected.
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