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Please assist with the 2 Accounting questions attached. Disk City, Inc. is a retailer for digital video disks. The projected net income for the current
Please assist with the 2 Accounting questions attached.
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,330,000 bas Management is planning for the coming year, when it expects that the unit purchase price of the video disks will i Required: 1. Calculate Disk City's break-even point for the current year in number of video disks. (Round your f 2. What 1. Calculate will be theDisk company's City's break-even net incomepoint for the for current the current yearyear if there in number is a 10 percent of video increase disks. (Round in projey 3. What 2. What volume willofbe sales the company's (in dollars) net must income Disk City for the achieve current in the yearcoming if thereyear is a to 10maintain percent the increase sameinn 4. In order 3. What to cover volume a 20 of sales percent (in increase dollars) must in theDisk disk's City purchase achieve price in thefor coming the coming year toyear maintain and still thema sa 4. In order to cover a 20 percent increase in the disk's purchase price for the coming year and st 1 Break-even point 2 Net income 3 Volume of sales 4 selling price per disk units t year is $1,330,000 based on a sales volume of 210,000 video disks. Disk City has been selling the disks for $20 each. The e of the video disks will increase 20 percent. (Ignore income taxes.) eo disks. (Round your final answer up to nearest whole number.) of video disks. (Round your final answer up to nearest whole number.) a 10 percent increase in projected unit sales volume? g year to maintain the same net income as projected for the current year if the unit selling price remains at $20? (Do not ro or the coming year and still maintain the current contribution-margin ratio, what selling price per disk must Disk City establish disks for $20 each. The variable costs consist of the $9 unit purchase price of the disks and a handling cost of $2 per disk. ains at $20? (Do not round intermediate calculations. Round your final answer to the nearest whole number.) must Disk City establish for the coming year? (Do not round intermediate calculations. Round your final answer to 2 d ling cost of $2 per disk. Disk City's annual fixed costs are $560,000. whole number.) our final answer to 2 decimal places.) Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data r Sales $ 3,280,000 Variable costs 820,000 Fixed costs 2,310,000 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable co Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double th 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 w 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 following operating changes Calculate the company's current income and determine the level of dollar sales needed to double that figure Current income Required dollar sales Determine the break-even point in speaker sets if operations are shifted to Mexico. (Do not round intermedia Break-even point Assume that management desires to achieve the Mexican break-even point; however, operations will remain a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit ca b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate un a. Fixed costs b. Variable costs by by per unit s. The following data relate to the period just ended when the company produced and sold 40,000 speaker sets: uce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,994,000. (In th es needed to double that figure, assuming that manufacturing operations remain in the United States. however, operations will remain in the United States. ting changes to double that figure, assuming that manufacturing operations remain in the United States. (Do not round intermediate not round intermediate calculations and round your final answer up to nearest whole number.) perations will remain in the United States. r intermediate unit calculations to the nearest whole number and round your final answers to the nearest whole dollar.) your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.) eaker sets: to be $1,994,000. (In the following requirements, ignore income taxes.) not round intermediate calculations and round your final answers to nearest whole dollar.) nearest whole dollar.) 2 decimal places.)Step by Step Solution
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