Question
QNO.1 ANSWER THE FOLLOWING QUESTION WITH FULL STEPS AND EXPLANATION: Q1) Zidaan Company produced and sold 60,000 compact disks each year at a price of
QNO.1 ANSWER THE FOLLOWING QUESTION WITH FULL STEPS AND EXPLANATION:
Q1) Zidaan Company produced and sold 60,000 compact disks each year at a price of $22 per disk. Annual fixed cost of a Company is $252,000 out of which $180,000 allocated to manufacturing and the remaining to marketing department. Variable manufacturing costs and variable marketing costs are $7 and $3.5 per unit. Required. 1. Compute break-even point in sales dollars for the year for Zidaan. 2. Compute the number of sales units required to earn a net income of $190,000 during the year. 3. Compute the selling price that provides the same contribution-margin ratio in the coming year, if variable manufacturing cost increased by 10%. Show your working.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started