Question 153 pts

SmartCorp sells 500 units, resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The number of units that must be sold to achieve $41,000 of operating income is: (Round intermediary calculations to two decimal places, and your final answer up to the nearest whole number.)

Group of answer choices

555 units

233 units

710 units

477 units

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Flag question: Question 16

Question 163 pts

Andy Manufacturing produces a single product that sells for $80. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 2,700 units. Attempting to improve performance, management is considering several alternative actions. Each situation is to be evaluated separately. Suppose that management believes that an 11% reduction in the selling price will result in an 11% increase in unit sales. If this proposed reduction in selling price is implemented: (Do not round intermediary calculations, and round the final answer to the nearest whole number.)

Group of answer choices

operating income will decrease by $14,494.

operating income will increase by $9,266.

operating income will decrease by $23,760.

operating income will increase by $14,494.

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Flag question: Question 17

Question 173 pts

Which of the following statements is true?

Group of answer choices

Managers can lower operating risk by changing fixed costs to variable costs in the long-term.

Managers can lower operating risk by changing variable costs to fixed costs in the long-term.

Managers can lower operating risk by reducing the selling price and increasing volume.

Managers can lower operating risk by increasing the selling price and reducing volume.

_______________________________________

Flag question: Question 18

Question 183 pts

The cost components of a heater include $38 for the compressor, $14 for the sheet molded compound frame, and $70 per unit for assembly. The factory machines and tools cost is $53,000. The company expects to produce 1,400 heaters in the coming year. What cost function best represents these costs?

Group of answer choices

y = 53,000 + 122X

y = 1,400 + 53,000X

y = 53,000 + 1,400X

y = 1,400 + 122X