+1-415-670-9189
info@expertsmind.com
Blue sage mountain produces hinged snowboards the price
Course:- Accounting Basics
Reference No.:- EM13601447




Assignment Help
Assignment Help >> Accounting Basics

Blue Sage Mountain produces hinged snowboards. The price charged affects the quantity sold. The following equation captures the relation between price and quantity each month:
Selling price $530 - .2 X Quantity Sold
In other words, if they wish to sell 500 boards a month, the price must be $430 ($530 - .2 x 500). Fixed costs of producing the boards are $70,000 a month and the variable costs per board are $90.

Required:
a. Prepare a table with quantities between 100 and 2,000 boards in increments of 100 that calculates the price, total revenue, total costs, and profits for each quantity-price combination.
b. Determine the profit-maximizing quantity-price combination.
c. Fixed costs fall from $70,000 a month to $50,000 a month. Should Blue Sage change its pricing decision?
d. Variable costs fall from $90 per unit to $50 per unit. Should Blue Sage change its pricing decision?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Research the corporation on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University'
Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The rent is prepaid for three months at $1,200 per month.
They expect to have 800 patients per year with the van. It will cost $3000 per year to maintain the vehicle, which includes all relevant costs. How much will the WCHC need in
What are the qualities and characteristics of a modular information system and integrated software system and how do they help in financial control in an organisation?
Rampart Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year. There are 50,000 patient-days estimated for next year. What is th
Morro Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $225 per board. This includes 30 pounds of d
Prepare the production cost report for the Finishing Department for October using the.first in, first out (FIFO) method. Costs per equivalent unit should be carried to four de
Prepare journalĀ entiresĀ for the transactions listed above and adjusting entries.Prepare an adjusted trial balance at December 31, 2012.Prepare an income statement and a retain