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PROBLEM 1 Given: The Dowell Company produces and sells brooms. Their present sales volume is 500Kpa., and each broom sells for 0.5$. Required: If their
PROBLEM 1 Given: The Dowell Company produces and sells brooms. Their present sales volume is 500Kpa., and each broom sells for 0.5$. Required: If their fixed expenses are 80K$pa. And unit variable cost is 0.3$, calculate the following: a) The total profit for the year, and the break-even point amount. b) The new profit if both the fixed costs, and the sales volume increase by 10%, c) Starting with the values in the given paragraph, what would the new break-even point quantity be, if there was a 10% increase in the selling price, and a 20K$ increase in fixed expenses. PROBLEM 2 Given: Using joint production methods, which costs them 300KTLpa., a company produces three products A, B, and C. The annual output of each product, together with the unit sale price at SOP, the annual additional processing costs, and the total sales revenue at POS are presented in the table below. Product APC A B Output (tons pa) 200 200 250 USP at SOP (TL/Kg) 1.50 1.00 2.00 (KTL pa) 100 50 150 TSR at POS (KTL pa) 500 250 750 Required: Write the appropriate income statements; a) If all products are sold at POS, b) If all products are sold at SOP. c) What would your sales policy be, to maximize your sales
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