Question
The Shama Corporation produces customize backpacks. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $335,000 and fixed selling
The Shama Corporation produces customize backpacks. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $335,000 and fixed selling and administrative cost of $249,780. Variable manufacturing cost of $60.00 and variable selling and administrative of $3.00. The selling price per unit is $83.00
If the selling price is increase by $10 and the total fixed expenses are decreased by $53,472 and variable cost per unit is increased to $66 what will the new breakeven point be in units (rounded)
Question 48 options:
| 21,659 |
| 19,678 |
| 17,710 |
| 23,639 |
Question 49 (2 points)
Based upon the original information and if my contribution margin was to increase by $3 and if the company sold 3,500 units more than breakeven, what would the profit be for the company?
Question 49 options:
| $301,000 |
| $290,500 |
| $70,000 |
| $80,500 |
Question 50 (2 points)
Based upon the original information, at what selling price is the manufacturer better off by not selling any of the customized backpacks.
Question 50 options:
| Less than $83 |
| Less than $83, but more than $63 |
| Less than $63 |
| Less than $20 |
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