Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is ($40000) and annual profit is (30,000$). The management of company presented a new design that increases fixed costs by (10%) and variable costs by (20%), in return for increasing sales to reach (12,000) annual units. At what price must the product be sold in order to to increase the profit by a third? Also, determine volume of production at break-even point

Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is ($40000) and annual profit is (30,000$). The management of company presented a new design that increases fixed costs by (10%) and variable costs by (20%), in return for increasing sales to reach (12,000) annual units. At what price must the product be sold in order to to increase the profit by a third? Also, determine volume of production at break-even point

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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