Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Robert Barchi Corp. can produce two types of light fixtures, the Indoors Model and the Outdoors model. The Indoors Model is sold for $150 and
Robert Barchi Corp. can produce two types of light fixtures, the Indoors Model and the Outdoors model. The Indoors Model is sold for $150 and has variable costs of $30. The Outdoors Model sells for $220 and has variable costs of $60. The company currently sells 4,800 units of Indoors Model and 7,200 units of the Outdoors Model. Their break-even point is 15,000 units in total at the current sales mix. Fixed costs equal $2,160,000. The company is considering buying new production equipment. The new equipment will increase the fixed cost by $208,000 per year and will decrease the variable cost of the Indoors Models and Outdoors Models by $10 and $20, respectively. Assuming the same sales mix, how many of each type of light fixture does Robert Barchi Corp need to sell to break even? 6,400 units of Indoors Model and 9,600 units of Outdoors Model. 7.400 units Of Indoors Model and 11,100 units of Outdoors Modet. 6.100 units Ot indoors Model and 9.150 units of Outdoors Model, 5,920 units Of Indoors Model and 8,880 units of Outdoors Model. The following information pertains to Brady \& Brees LLP: - Cash is collected from customers in the following manner: - 20% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. - Labor costs are 25% of sales. Other operating costs are $30,000 per month (including $5,000 of depreciation). Both of these are paid in the month incurred. - The cash balance on September 1 is $4,380. A minimum cash balance of $4,000 is required at the end of September. Money can be borrowed in multiples of $1,000. How much is the cash balance on September 30th? $4,680 $10,760 $5,950
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