Question
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
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