QUESTION 9 Using the information shown on textbook pg. 3-4 for Universal Sports Exchange, determine the new sale price for jersey's if management decides to adopt a "pass along the cost to the customer strategy" to maintain the current level of operating income if C&C Sports increases the sales price of jerseys by 8%? (format your answer without dollar signs, or comma's, and round to two decimal places; example: $25.56521 would be entered as 25.56) 34 CHAPTER 3 Cost-VolumeProfit Analysis and Pricing Decisions EXIBIT 3.1 Universal Sports Exchange's contribution format Income tent Per Unit $ 30.00 Ratio 1009 5 1,620,000 73% SN 2 Universal Sports Exchange 2 Income Statement 2 for the 52 weeks ended January 30, 2021 4 5 Sales 7 Less: variable expenses Cost of goods sold $ 1.188.000 Sales commissions 81000 10 Tags 27.000 Total variable expenses 12 Contribution margin 11 Less: fed expenses Selling 145.000 15 Administrative 95.000 15 Totalfixed expenses 240,000 17 Operating income 84.000 22.00 1.50 0.50 24.00 $ 6.00 BOX 1.296,000 324,000 $ Reality Check who really uses breakeven analysis? Retail establishments and man benefits at age 66 instead of age 62, you will breakeven between facturers have an obvious interest 2 777 in breakeven analysis. But who else Houschunters can sebreakeven to determine whether it might find the concept beneficial makes more sense to rent or buy a house. An important factor in Farmers can we breakeven this analysis is how long you expect to remain in the area and the analysis to determine whether ar's housing costs in Los Angeles, it will take about 3 years and crop will be profitable when taken to 3 months for the rental costs to equal the costs of homeownership market. If prices begin to fall farm But if you settle in Memphis, Tennessee, the breakeven point is e may we breakeven analysis to decide whether they should only one year and four months ellabanes in advance to take advantage of a higher price. For instance, as soybean prices dropped from S11 per bushel to less Sources: Marilyn Kaldus "When You Break Even as a Homeowner than 59 in the first half of 2015, farmers likely began to lock in Depends on Where You Live in Southern California. The Orange CountyMay 23, 2018 https://www.oregister advance sales since the price is the breakeven point for many com/201605/23/buy-entahome-in-southern California-heres farmers ey to get out (accessed August 16, 2013). Lorie Konis, Senior citizens an tsebreakeven analysis to decide when to Social Security Breakeve Calculations Can Be Misleading." CNBC, begis taking social security benefits. Retirees can begin drawing cos, August 13, 2011. http://www.cnbc.com/2018/01/23/those bencs as early as age 62. bat the longer they wait to take benefits social security break-even calculations-can-be-misleading html the greater the monthly amount. When deciding at what age to start (coad August 16, 2018 Don Lee. "In Soybean Country, Trump's withdrawing the benet, retirees need to determine the beakeven Trade War with China Tests Patience and Nerves." Los Angeles Times point (age) where the total benefits taken at age 62 equal the total August 16, 2016, bmp:/www.stimes.com/business/la-5-soybean benetes received later. For instance, if you choose to start receiving farmees tarifs 20150816 story.html (cessed August 10, 2018) We can use our definition of the contribution margin as a shortcut to finding the breakeven point. Since the contribution margin is the amount that is available to cover fixed expenses and provide a profit (50 in the breakeven case) we can use the following formula to calculate the breakeven point in units Total sed expenses = Becakeven point in units Contribution margin per unit $240.000 Sh.00 40,000 jerseys QUESTION 9 Using the information shown on textbook pg. 3-4 for Universal Sports Exchange, determine the new sale price for jersey's if management decides to adopt a "pass along the cost to the customer strategy" to maintain the current level of operating income if C&C Sports increases the sales price of jerseys by 8%? (format your answer without dollar signs, or comma's, and round to two decimal places; example: $25.56521 would be entered as 25.56) 34 CHAPTER 3 Cost-VolumeProfit Analysis and Pricing Decisions EXIBIT 3.1 Universal Sports Exchange's contribution format Income tent Per Unit $ 30.00 Ratio 1009 5 1,620,000 73% SN 2 Universal Sports Exchange 2 Income Statement 2 for the 52 weeks ended January 30, 2021 4 5 Sales 7 Less: variable expenses Cost of goods sold $ 1.188.000 Sales commissions 81000 10 Tags 27.000 Total variable expenses 12 Contribution margin 11 Less: fed expenses Selling 145.000 15 Administrative 95.000 15 Totalfixed expenses 240,000 17 Operating income 84.000 22.00 1.50 0.50 24.00 $ 6.00 BOX 1.296,000 324,000 $ Reality Check who really uses breakeven analysis? Retail establishments and man benefits at age 66 instead of age 62, you will breakeven between facturers have an obvious interest 2 777 in breakeven analysis. But who else Houschunters can sebreakeven to determine whether it might find the concept beneficial makes more sense to rent or buy a house. An important factor in Farmers can we breakeven this analysis is how long you expect to remain in the area and the analysis to determine whether ar's housing costs in Los Angeles, it will take about 3 years and crop will be profitable when taken to 3 months for the rental costs to equal the costs of homeownership market. If prices begin to fall farm But if you settle in Memphis, Tennessee, the breakeven point is e may we breakeven analysis to decide whether they should only one year and four months ellabanes in advance to take advantage of a higher price. For instance, as soybean prices dropped from S11 per bushel to less Sources: Marilyn Kaldus "When You Break Even as a Homeowner than 59 in the first half of 2015, farmers likely began to lock in Depends on Where You Live in Southern California. The Orange CountyMay 23, 2018 https://www.oregister advance sales since the price is the breakeven point for many com/201605/23/buy-entahome-in-southern California-heres farmers ey to get out (accessed August 16, 2013). Lorie Konis, Senior citizens an tsebreakeven analysis to decide when to Social Security Breakeve Calculations Can Be Misleading." CNBC, begis taking social security benefits. Retirees can begin drawing cos, August 13, 2011. http://www.cnbc.com/2018/01/23/those bencs as early as age 62. bat the longer they wait to take benefits social security break-even calculations-can-be-misleading html the greater the monthly amount. When deciding at what age to start (coad August 16, 2018 Don Lee. "In Soybean Country, Trump's withdrawing the benet, retirees need to determine the beakeven Trade War with China Tests Patience and Nerves." Los Angeles Times point (age) where the total benefits taken at age 62 equal the total August 16, 2016, bmp:/www.stimes.com/business/la-5-soybean benetes received later. For instance, if you choose to start receiving farmees tarifs 20150816 story.html (cessed August 10, 2018) We can use our definition of the contribution margin as a shortcut to finding the breakeven point. Since the contribution margin is the amount that is available to cover fixed expenses and provide a profit (50 in the breakeven case) we can use the following formula to calculate the breakeven point in units Total sed expenses = Becakeven point in units Contribution margin per unit $240.000 Sh.00 40,000 jerseys