Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Cornerstone Of Business Decision Making

Authors: Jay S Rich, Jeff Jones, Linda Ann Myers

5th Edition

0357132696, 978-0357132692

More Books

Students also viewed these Accounting questions

Question

What is Aufbau's rule explain with example?

Answered: 1 week ago

Question

Write Hund's rule?

Answered: 1 week ago