Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period must ended when the company produced and sold 42.000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period must ended when the company produced and sold 42.000 speaker sets, Sales Variable costs Fixed costs 53,360,000 340,000 2,200,000 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs Variable costs are expected to average 518 per set; annual fixed costs are anticipated to be $1984.000 on the following requirements, ignore income taxes) Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double that your assuming that manufacturing operations remain in the United States DO 2. Determine the break-even point in speaker sets if operations are shifted to Mexico 3. Assume that management desires to achieve the Mexican break even point however operations will remain in the United States o. If variable costs remain constant, by how much must fixed costs changer b. If fixed costs remain constant by how much must unit variable cost change? 4. Determine the impact increase decrease or no effect of the following operating changes nortinn tirantering answers in the tabs below Required 3 Required 4 Calculate the company's current Income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. Current income Required dollar sales Required 2 > Required 1 Required 2 Required 3 Required 4 Determine the break-even point in speaker sets if operations are shifted to Mexico. Break-even point units Required i Required 2 Required 3 Requ Assume that management desires to achieve the Mexican break even point; however, operations will remain in the United States a. If variable costs remain constant by how much must fixed costs change? b. If fixed costs remain constant, by how much must unit variable cost change? (Do not round intermediate calculations and round your final answer to 2 decimal places) Show less Fed costs 6. Va conts by (per unit Required 2 Required 4 ) Determine the impact increase, decrease, or no effect) of the following operating changes. Efect of an increase in direct material costs on the break even point Elect of an increase in tored administrative couts on the unit contribution margin Effect of an increase in the unit contribution margin on net income Electo a decrease in the urberol units sold on the break even point Required

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

International Auditing Standards In The United States Comparing And Understanding Standards For ISA And PCAOB

Authors: Asokan Anandarajan, Gary Kleinman

2nd Edition

1953349323, 9781953349323

More Books

Students also viewed these Accounting questions