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THE BOOK GIVES YOU A HINT FOR A 15.000 UNITS CURRENTLY THE UNIT SELLING PRICE OF A PRODUCT IS $1,500. THE UNIT VARIABLE COSTIS $1,200,
THE BOOK GIVES YOU A HINT FOR A 15.000 UNITS CURRENTLY THE UNIT SELLING PRICE OF A PRODUCT IS $1,500. THE UNIT VARIABLE COSTIS $1,200, AND THE TOTAL FIXED COSTS ARE $4,500,000. A PROPOSAL IS BEING EVALUATED TO INCREASE THE UNIT SELLING PRICE TO $1,600. A. COMPUTE THE CURRENT BREAK-EVEN SALES UNITS) B.COMPUTE THE ANTICIPATED BREAK EVEN SALES (UNITS) ASSUMING THAT THE UNIT SELLING PRICE IS INCREASED AND ALL THE COSTS REMAIN CONSTANT. Problem Quiz 6: Select Audio Inc.CONTRIBUTION MARGIN ANALYSIS -SALES SELECT AUDIO INCI SELLS ELECTRONIC EQUIPMENT MANAGEMENT DECIDED EARLY IN THE YEAR TO REDUC THE PRICE OF THE SPEAKERS IN ORDER TO INCREASE SALES VOLUME. AS A RESULT, FOR THE YEAR ENDED DECEMBER 31, THE SALES INCREASED BY $31.875 FROM THE PLANNED LEVEL OF $1,048,125. THE FOLLOWING INFORMATION IS AVAILABLE FROM THE ACCOUNTING RECORDS FOR THE YEAR ENDED DECEMBER 31. ACTUAL PLANNED INCREASE DECREASE) SALES $1.080,000.00 $1.048,125.00 $31.875.00 NUMBER OF UNITS SOLD $36,000.00 $32.250.00 $3.750.00 SALES PRICE $30.00 $32.50 $(2.50) VARIABLE COST PER UNIT $10.00 $10.00 O A. PREPARE AN ANALYSIS OF THE SALES QUANTITY AND THE UNIT PRICE FACTORS. HINT FROM TEXTBOOK:SALES QUANTITY FACTOR, 5121.875 B. DID THE PRICE DECREASE GENERATE SUFFICIENT VOLUME TO RESULT IN A NET INCREASE IN CONTRIBUTION MARGIN IF THE ACTUAL VARIABLE COST PER UNIT WAS $10.00 AS PLANNED? Cenage Template Ex17 28 299 x 5x
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