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Return to quest As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work.
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As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some whatif analyses. Following is the budgeted information regarding the coming year:
Selling price per unit
Variable cost per unit
Fixed costs per year
Required:
What is the breakeven volume, in units and dollars, for the coming year?
Assume that the goal of the company is to earn a pretax operating profit of $ for the coming year. How many units would the company have to sell to achieve this goal?
Assume that of the $ variable cost per unit the laborcost component is $ Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is higher than anticipated? What if labor costs are higher than anticipated? What if labor costs turn out to be higher than anticipated?
Assume now that management is convinced that labor costs will be higher than originally planned when the budget for the year was put together. What selling price per unit must the company charge to maintain the budgeted ratio of contribution margin to sales?
Hint: Use the Goal Seek function in Excel to answer this question.
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Assume that of the $ variable cost per unit the laborcost component is $ Current negotiations with the employes of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effec on the breakeven point in units if selling price and fixed costs are as planned, busts turn out to be higher than anticipated? Round anticipated? What if labor costs are higher than anticipated? What if labor ie and other answers to the nearest "Per Unit" and Chance in Breakeven Point" answers to decimal nlaces I
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