Question
Grove auto is considering the introduction of a new model, wireless speakers with the following price and cost characteristics. Sales price for 43 dot 00
Grove auto is considering the introduction of a new model, wireless speakers with the following price and cost characteristics. Sales price for 43 dot 00 per unit. Veritable calls 203 dot 00 per unit. Fixed calls 715, 000 per year. Assumed that the projected number of units sold for the year is 4004 hundred, consider requirements BC and D independently of each other..
Groove auto is considering the introduction of a new model of wireless speakers for the following price and cost characteristics sales price 443.00 variable cost 203.00 fixed cost 715,000 assume thelat the projected number of units sold for the uear is 4,400.consider requirements b,c,d,independently of each other.
[a]What will the operating profit be?
[b] What is the impact on operating profit if the sales price decreases by twenty percent increases by ten percent?
[c] What is the impact on operating profit if variable cost per unit decreased by 10% and increased 20%
[d] Suppose that fixed costs for the year are 20% lower than projected and variable costs. For a unit are 10% higher than projected. What impact will these calls changes have on operating profit for the year.will profits go up?down by how much?
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