Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the below table to answer the following questions. Selling Price = $41.00 Variable 2,100 3,100 Fixed Cost Cost Sales Volume 4,100 Profitability 5,100
Use the below table to answer the following questions. Selling Price = $41.00 Variable 2,100 3,100 Fixed Cost Cost Sales Volume 4,100 Profitability 5,100 6,100 $ 42,500 14 42,500 15 42,500 16 $ 14,200 12,100 10,000 38,100 64,100 90,100 35,000 52,500 14 4,200 31,200 52,500 15 2,100 28,100 52,500 16 25,000 50,000 62,500 14 (5,800) 21,200 48,200 62,500 15 62,500 16 (7,900) 18,100 (10,000) 15,000 $41,200 $68,200 $95,200 $122,200 116,100 60,000 85,000 110,000 58,200 85.200 112,200 54,100 80,100 106,100 75,000 100,000 75,200 102,200 44,100 70,100 96,100 40,000 65,000 90,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Finch projects the following data for Delatine: sales, 4,100 bottles; fixed cost, $42,500; and variable cost per unit, $16. c. Finch is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $14 if it agrees to conditions that will increase fixed cost to $52,500. Volume is expected to remain constant at 4,100 bottles. Determine the effects on the company's profitability if this opportunity is accepted.
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