Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pharoah, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $196,560 per year. Current sales plans call for 14.000 plastic pitchers and 28.000 glass pitchers to be sold in the coming year. (a) Your Answer Correct Answer Your answer is correct How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.) Plastic pitchers 3780 7560 12 TI Pharoah, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $23. What would be the new contribution margin per unit if managers switched to the new supplier? Plastic pitchers Glass pitchers Contribution margin per unit $ What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to decimal places, eg. 25,000) Plastic pitchers Glass pitchers Breakeven in Units Carla Vista Designs makes various accessories for pets. Their trademark product. Pet Bed, is perceived to be high quality but not extravagant, and is sold in a kariety of pet stores. Margaret Moore, marketing manager, has convinced her boss that they are missing an important segment of the market. "We can increase the quality of the material and design and market Pet Bed to a higher end clientele. Margaret claims. "We won't compete with our existing product. It's win-win!" PetBeds sell for $120 each. Margaret estimates the gross margin at $ 40. After working with production engineers and the marketing research team, Margaret has designed a bed that she believes the new market segment will purchase $ 240 for. The production engineers and accountants believe it will cost about $ 120 to make, Your answer is correct. If Carla Vista Designs uses cost-plus pricing and prices most products like the original Pet Bed, what should be the price of the high-end PetBed? (Round answer to O decimal places, eg. 25,000.) Price of the high-end Pet Bed 180 per bed * Your answer is incorrect. If Carla Vista Designs wants to preserve the existing gross margin percentage, what is the target costat a market price of $ 156 (Round answer to decimal places, es. 25,000.) Target cost 46,8 per bed

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_2

Step: 3

blur-text-image_3

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

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

More Books

Students also viewed these Accounting questions