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pleas help with the last half of this question. im including answers to the first half 6. A company manufacturing toys has a fixed cost
pleas help with the last half of this question. im including answers to the first half 6. A company manufacturing toys has a fixed cost of $60,000. Variable cost is 6 per toy. Selling price is $10 per toy. Company target profit is $100,000. The company found that its variable cost is going to increase by $1.5 and plans to raise its selling price by $3 and reduced the fixed costs by $20,000. How many more (less) toys must be sold at the new price to reach the target profit of $100,000? What is the markup (profit margin %) on sales price at this new sales volume? What is the markup (profit margin %) on total cost? 6) Present Unit sales = (Fixed cost+Desired profit)/Contribution margin per unit = (60000+100000)/(10-6) = 40000 Units Proposed unit sales = (40000+100000)/(13- 7.5) = 25455 Units So (40000-25455) = 14545 less units sold
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