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please help! i am so confused Gray Fullbuster Inc. manufactures lce Cube Trays. One of the managers is considering raising the current price of ice
please help! i am so confused
Gray Fullbuster Inc. manufactures lce Cube Trays. One of the managers is considering raising the current price of ice cube trays $32 per unit by 10%. If this price increase goes through, it is estimated that demand will decrease by 20.000 units per month. Gray currently sells 50,200 units per month, each of which costs $22 in variable costs. Fixed costs are $194,000. Required: a. What is the current profit? b. What is the current break-even point in units? c. If the manager raises the price, what will profit be? d. If the manager raises the price, what will be the new break-even point in units? e. Assume the manager does not know how much demand will drop if the price increases. By how much would demand have to drop before the manager would not want to implement the price increase? Complete this question by entering your answers in the tabs below. What is the current proft? Complete this question by entering your answers in the tabs below. What is the current break-even point in units? Note: Round your answer to the nearest whole number. Complete this question by entering your answers in the tabs below. If the manager raises the price, what will profit be? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. If the manager raises the price, what will be the new break-even point in units? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Assume the manager does not know how much demand will drop if the price increases. By how much would demand have to drop before the manager would not want to implement the price increase? Note: Do not round intermediate calculations. Round your answer to the nearest whole number Step by Step Solution
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