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Houston-based tdvanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 45,000
Houston-based tdvanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 45,000 speaker sets: Sales $3, 733,989 lIr'ariatrlle costs 945,969 Fixed costs 2,31,@8@ Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,992000.{in the foilowing requirements. ignore income taxes] Required: 1. Calculate the company's current income and determine the levei of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assu me 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, bv how much must unit variable cost change? 4. Determine the impact {increase decrease, or no effect] ofthe foliowing operating changes. Complete this question by entering your answers in lite tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the company's current income and determine the level of doliar sales needed to double that figure, assuming that manufacturing operations remain in the United States. [Do not round intermediate calculations and round your nal answers to nearest whole dollar.) Current income _ Required dollar sales _ Houston-based idvanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 45,000 speaker sets: Sales $3, teases Variable costs Bil-5,86% Fixed costs 2,316,9BIB Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. 'v'ariable costs are expected to average $18.90 per set; annual fixed costs are anticipated to be $1,99200C1iln the following requirements. ignore income taxes] Required: 1. Calculate the companv's current income and determine the level of dollar sales needed to double that figure= assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assume that management desires to achieve the Mexican breakeven point; however, operations will remain in the United States. a. If variable costs remain constant, lav how much must fixed costs change? in. If fixed costs remain constant. by how much must unit variable cost change? 4. Determine the impact [increase decrease, or no effect] ofthe following operating changes. Complete this que5tion by entering your answers" in the HM below. Required 1 Required 2 Required 3 Required 4 Determine the breakeven point in speaker sets if operations are shifted to Mexico. [Round your final answer up to nearest whole number.) Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company.f produced and sold 45,000 speaker sets: Sales $3,?sa,aao 'v'ariable costs 945,963 Fixed costs 2,316,969 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. lv'ariable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1.9'EEZUUO. {In 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 figure, assuming that manufacturing operations remain in the United States. 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. a. lfvariable costs remain constant, by how much must xed costs change? 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. Complete this question by entering mt answers in le tabs behaw. Required 1 Required 2 Required 3 Required 4 Assume that management desires to achieve the Mexican breakeven point: however. operations will remain in die United States. a. If variable costs remain constant, by how much must xed costs change? {Round your intermediate unit calculations to the nearest whole number and round your nal answer to the nearest whole dollar.) b. If xed costs remain constant, by howI much must unit variable cost change? {Round your intermediate unit calculations to the nearest I.vhole number and round your nal answer to 2 decimal places.) Show less; a- n-m Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 45000 speaker sets; Sales $3, ree,eee 'v'ar'iable costs 945,060 Fixed costs 2,313,969 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,992000. [in 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 figurer assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assume that management desires to achieve the Mexican breakeven 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? 4. Determine the impact {increase decrease, or no effect} of the foliowing operating changes. Complete this question by entering your answers in lite tabs behave. Required 1 Required 2 Required 3 Reuired 4 Determine the impact (increase, decrease, or no effect) of the following operating changes. Effect of an increase in direct materiai costs on the break-even point Effect of an increase in xed administrative costs on the unit contribution margin. Eect of an increase in the unit contribution margin on net income. EiTect of a decrease in the number of units sold on the break-even point
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