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[The following information applies to the questions displayed below.] Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to
[The following information applies to the questions displayed below.] Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is produced. Alpine Thrills Ski Company is subject to a 25 percent income tax rate. roblem 7-51 Part 4 Suppose the variable cost per unit of touring skis decreases by 10 percent, and the total fixed cost of touring skis increases by 10 ercent. Compute the new break-even point. (Do not round intermediate calculations. Round your final answer up to nearest whole Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is produced. Alpine Thrills Ski Company is subject to a 25 percent income tax rate. roblem 7-51 Part 3 How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as e mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.)
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