Question
I have the solutions for A-D, I just need E-H! Please help! 2. Hacker Golf has developed a unique swing trainer golf club. They currently
I have the solutions for A-D, I just need E-H! Please help!
2. Hacker Golf has developed a unique swing trainer golf club. They currently pay a production company to produce the golf club for them at a cost of $22 each. Other variable costs total $6 per golf club, and fixed expenses are $192,000. Hacker Golf currently sells the trainer golf club for $48. NOTE: Solve each requirement as a separate situation and always go back to original data unless otherwise directed. Round all answers to nearest unit or nearest cent. a. Calculate Hackers annual breakeven point in units
. b. Assume Hacker wants to earn a Profit of $120,000. How many units must it sell?
c. Hacker Golf is considering raising its selling price to $49.95. Calculate the new breakeven point in units.
d. Hacker Golf has found a new company to produce the golf club at a lower cost of $19. Calculate the new breakeven point in units
. e. Assume Hacker has predicted demand for their clubs to be 16,000. What is the lowest price they can charge if they want to earn a $120,000 profit?
f. Assume Hacker can sell 20,000 clubs, but needs to increase advertising costs in order to stimulate the extra demand. Assuming it wants to earn a $150,000 profit, how much can Hacker increase advertising costs by?
g. Hacker has run into supplier problems and will only be able to sell 13,500 clubs this year because of a supplier shortage. Assuming it has already sold 5,000 clubs at the existing price, that it can reduce monthly fixed costs by $1,000 and unit variable cost by $1, what will the new price need to be in order to still earn a $120,000 profit?
h. Assume same scenario as letter (b) but the $120,000 is after-tax. How many units must Hacker sell? Assume a tax rate of 40%.
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