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Please see the template and answer the question using those templates please question 3-30: price and cost characteristics. Sales price $ 270 per unit Variable
Please see the template and answer the question using those templates please
question 3-30:
price and cost characteristics. Sales price $ 270 per unit Variable costs 120 per unit Fixed costs 300,000 per month (LO 3-1) 3-30. Basic Decision Analysis Using CVP Refer to the data for Derby Phones in Exercise 3- 29. Assume that the projected number of units sold for the month is 5,000. Consider requirements (b), (c), and (d) independently of each other. Required a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? What is the impact on operating profit if C. variable costs per unit decrease by 10 percent? Increase by 20 percent? d. Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? B D E F G H I J K L 1 Basic Decision Analysis Using CVP Operating Profit = Total Revenues - Total Costs Selling price Variable costs per unit No. of Units Total variable cost Less: Fixed costs Operating Profit Explanation of impact: A Ex. 3-30 2 3 4 a. S 6 7 8 9 10 11 12 13 14 b. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Selling price Variable costs per unit No. of Units Total variable cost Less: Fixed costs Operating Profit Explanation of impact: Selling price Variable costs per unit No. of Units Total variable cost Less: Fixed costs Operating Profit Explanation of impact: Selling price Variable costs per unit No. of Units Total variable cost Less: Fixed costs Operating Profit Explanation of impact: Selling price Variable costs per unit 29 30 c. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 d. 47 48 49 SO 51 52 53 54 SS 56 57 58 SO No. of Units Total variable cost Less: Fixed costs Operating Profit Explanation of impact: Selling price Variable costs per unit Explanation of impact: No. of Units Total variable cost Less: Fixed costs Operating ProfitStep by Step Solution
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