Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello. I need hep with these three problems. Please. (Select one of the choices and show work) 1 Alpha Company has a selling price of

Hello. I need hep with these three problems. Please. (Select one of the choices and show work)

1 Alpha Company has a selling price of $25, unit variable cost of $10, and sales volume of 300 units. Fixed costs total $6,000. Alpha believes that if it increases the price to $27, the sales volume will drop by 15 units (from 300 to 285). How much will Alpha's profit change if it increases the price to $27?

A. No enough information

B. $345 Decrease

C. $150 increase

D. $345 Increase

E. $395 increase

2.. If the price is $10, unit variable cost is $8 per unit and fixed cost is $4 per unit (at current sales volume), how much will total profit change if we sell 10 more units at the same price? (assume that the new sales volume is still in the relevant range

A. decrease by $20

B. increase by$20

C. increase by $60

D. increase by $100

E. Not enough information

3.

Estimate unit variable costs using the following information

Month

Total costs

Sales volume (units)

March

$200

16

April

$140

6

May

$260

26

June

$320

21

A. Not enough information

B. $6/ unit

C. $8/ unit

D. $9/ unit

E. $12/ unit

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

3rd edition

9781337909402, 978-1337788281

More Books

Students also viewed these Accounting questions

Question

Outline Watson and Rayners classic work on fear conditioning.

Answered: 1 week ago