Cullumber Inc. wants to introduce a new product with a unit selling price of $53. The product will require an investment of $2320000, and the company desires a 15% ROI. Projected sales are 58000 units. Compute the target cost per unit.
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Vaughn Manufacturing wants to produce and sell a new lightweight radio. Desired profit per unit is $1.60. The expected unit selling price is $24 based on a volume of 11000 units. What is the total target cost at this sales volume? O $281600 O $264000 $246400 O $17600Marigold Corp. is using the target cost approach on a new product. Information gathered so far is as follows: Expected annual sales Desired profit per unit Target cost What is the unit selling price? O $0.30 O $0.64 O $0.62 O $0.32 500000 units $0.32 $150000
- Concord Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1740000 ($6.00 per unit) and target costs are $1537000. What is the desired profit per unit? CCoC Cla O $0.70 O $3.00 O $5.30 O None of the aboveConcord Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1740000 ($6.00 per unit) and target costs are $1537000. What is the desired profit per unit? O $0.70 O $3.00 O $5.30 O None of the aboveDerby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 18 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b), (c), and (d) independently of each other. Required: 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 10 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?
- A company wants to price its product by using target ROR method. If the investment isestimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit?If selling price $40 per unit Variable cost $25 per unit Fixed cost $45000 Required: a) What is the breakeven point per unit ? b)What is the activity level to generate a profit of $40000 c)If the company budgets to sell 5000 units of a product. Calculate the margin of safety. d) Calculate the contribution/Sales Ratio of the product. e)Find the breakeven point in sales revenue. f) Calculate the sales revenue that is required to generate a profit of $40000.If selling price $40 per unit Variable cost $25 per unit Fixed cost $45000 Required: a) What is the breakeven point per unit ? b)What is the activity level to generate a profit of $40000 c)If the company budgets to sell 5000 units of a product. Calculate the margin of safety. d) Calculate the contribution/Sales Ratio of the product. e)Find the breakeven point in sales revenue. f) Calculate the sales revenue that is required to generate a profit of $40000. NB: Please to answer question a-f seperately
- Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: 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 10 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? complete this question by entering your…If selling price $300 per unit Variable cost $250 per unit Fixed cost $50000 Required: a) What is the breakeven point per unit? b) What is the activity level to generate a profit of $40000? c) If the company budgets to sell 5000 units of a product. Calculate the margin of safety. d) Calculate the Contribution/Sales Ratio of the product. e) Find the breakeven point in sales revenue. f) Calculate the sales revenue that is required to generate a profit of $40000.Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: 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 10 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? complete this question by entering your…