Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 2H. Cool Summer Inc. sells fans for $78 per unit with $21 per unit production cost. Administrative cost per period is $16.895. Packaging

image text in transcribed
QUESTION 2 2H. Cool Summer Inc. sells fans for $78 per unit with $21 per unit production cost. Administrative cost per period is $16.895. Packaging costs are $2.50 per unit. The company's production capacity per period is 690 units. a) How much does the sale of each additional unit contribute towards increasing the company's profit? [1 mark) b) Determine the break-even point in dollars of sales AND as a percent of capacity. Round 96 capacity to nearest whole %6. (3 marks) cilt Cool Summer's contribution rate is decreased to 5096, how many units need to be sold in order to earn a net income of 54,555? (2 marks)

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

Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management

Authors: Ioannis Akkizidis, Manuel Stagars

1st Edition

1119099161, 978-1119099161

More Books

Students also viewed these Finance questions

Question

3. Identify challenges to good listening and their remedies

Answered: 1 week ago

Question

4. Identify ethical factors in the listening process

Answered: 1 week ago