Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pricing Problems- PNG Electric manufactures a lot of electric products including rechargeable lights. One of these lights the P90 sells for $169 a unit. The

image text in transcribed
Pricing Problems- PNG Electric manufactures a lot of electric products including rechargeable lights. One of these lights the P90 sells for $169 a unit. The total fixed costs related to the P90 is $240,000 a month. The variable cost for P90 is $129 and they sell 5,100 a month. Use the statistics for all of the problems below. (21 points total for this question) A.,What is the break even in units for the P90 B.) Did they break even yeso C.) What is the contribution margin for this product. D. if we dropped the SELL price of the P90 by 12% what would be the new break even? E.) If our cost of raw materials drops by $3.00 how does this change the break even? F.) If we decide to run a promotion and reduce our selling price by 20% how many MORE units will I need to sell? H.) I decide to work with my main competition to run our promotions on opposite months, Is this legal

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

Step: 3

blur-text-image

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

Accounting Regulation In Japan Evolution And Development From 2001 To 2015

Authors: Masatsugu Sanada, Yoshihiro Tokuga

1st Edition

0367221071, 9780367221072

More Books

Students also viewed these Accounting questions