The writer is very fast, professional and responded to the review request fast also. Thank you.
Unit 3 Assignment: Chapter 3 Connect Homework
LO 3-1) 3-29. Basic Decision Analysis Using CVP
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.
Sales price $ 270 per unit
Variable costs 120 per unit
Fixed costs 300,000 per month
a. What number must Derby sell per month to break even?
b. What number must Derby sell to make an operating profit of $180,000 for the month?
(LO 3-1) 3-30. Basic Decision Analysis Using CVP
Refer to the data for Derby Phones in Exercise 3-29. Assume that the projected number of units sold for the month is 5,000. Consider requirements (b), (c), and (d) independently of each other.
a. What will the operating profit be?
b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?
c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?
d. Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?
(LO 3-4) 3-63. Extensions of the CVP Model—Multiple Products
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The bags have the following characteristics.
Selling price per bag $70 $100
Variable cost per bag $30 $40
Expected sales (bags) per year 8,000 12,000
The total fixed costs per year for the company are $819,000.
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix is the same at the break-even point, compute the break-even point.
c. If the product sales mix were to change to nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more