Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to find the breakeven price and the market demand. the profit/loss in units and dollars. please show work! my issue is I cant

I need to find the breakeven price and the market demand. the profit/loss in units and dollars. please show work!
my issue is I cant determine what numbers in the scenario are fixed costs, variable costs, etc. image text in transcribed
ok thank you. I thought I was missing something. Those are all the numbers the problem offers so I assume that all parts of this cannot be calculated?
The manufacturing cost of her rack-when made in reasonable quantities-is approximately $2.80 if it is painted black and $3.60 if it is chromed. Similar products have been selling at retail in the $9.95 to $19.95 range. The sales and administrative overhead to be charged to the division will amount to $95,000 a year. This will include Keating's salary and some travel and office expenses. She expects that a number of other products will be developed in the near future. But for the coming year, she hopes the shoe rack will account for about half the consumer products division's sales volume. The manufacturing cost of her rack-when made in reasonable quantities-is approximately $2.80 if it is painted black and $3.60 if it is chromed. Similar products have been selling at retail in the $9.95 to $19.95 range. The sales and administrative overhead to be charged to the division will amount to $95,000 a year. This will include Keating's salary and some travel and office expenses. She expects that a number of other products will be developed in the near future. But for the coming year, she hopes the shoe rack will account for about half the consumer products division's sales volume

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

Students also viewed these Accounting questions