Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

A manufacturing company sells one product with a variable cost of $18 per unit. The company knows that the price charged will affect demand. Fixed costs are $275,000 and the following chart represents the estimated demand at various price levels. If sales exceed 50,000 units the company will need to lease additional manufacturing space and equipment at an additional cost of $100,000 per year.

Units Sold Price
25,000 $30
50,000 $28
75,000 $26
100,000 $23

Based on this information which of the following statements is true?

A. Selling the units at $28 will generate a profit of $225,000.

B. Selling the units at $23 will generate a profit of $225,000.

C. Selling the units at $26 will generate a profit of $225,000.

D. Both A and D are correct therefore the company would record the same profit under either pricing option.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M943087

Have any Question? 


Related Questions in Accounting Basics

Accounting theory assignment read the articles on study

Accounting Theory Assignment Read the articles on study desk: Volkswagen The scandal explained Instructions This assignment is a research based essay where you are required to relate a practical example to accounting the ...

What a baker doesdiscuss the business activitiesprocesses

What a Baker does? Discuss the business activities/processes of the organisation to show your understanding about the business.

Accounting helpkelloggk8286nyse general millsgis7295nyse

Accounting Help Kellogg K $82.86 NYSE General Mills GIS $72.95 NYSE Target TGT $70.12 NYSE Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch ...

Practice questionswhy is a balance sheet claimed to be a

Practice questions: Why is a balance sheet claimed to be a statement of the financial position of a business? What limitations do you think it has?

International accountingbased upon your three papers

International Accounting Based upon your three papers (Attached), the accounting standards paper and the company analysis paper, prepare a PowerPoint presentation of 10-15 slides in which you summarize what you have lear ...

Module- slpaccounting cost systems and cost behavioryou are

Module- SLP ACCOUNTING COST SYSTEMS AND COST BEHAVIOR You are applying for a managerial position at an innovative and rapidly growing company. This is a dynamic company that wants an individual who adds value to the orga ...

Assignment changing the aismigrating to a new accounting

Assignment: Changing the AIS Migrating to a new accounting information system is not an easy task. Many firms have struggled with this process, even though our textbook makes the process seem quite straightforward. Recen ...

Explain what is meant by accruals and prepayments andhow

Explain what is meant by accruals and prepayments, and How they affect the trial balance.

Colt football co had a player contract with watts that is

Colt Football Co. had a player contract with Watts that is recorded in its books at $5,600,000 on July 1, 2014. Day Football Co. had a player contract with Kurtz that is recorded in its books at $7,000,000 on July 1, 201 ...

Oregon corporation has filed a voluntary petition to

Oregon Corporation has filed a voluntary petition to reorganize under Chapter 11 of the Bankruptcy Reform Act. Its creditors are considering an attempt to force liquidation. The company currently holds cash of $13,000 an ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate