+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
Snyder, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 un
Because declining prices are usually equated with economic recession, it is likely that the higher taxes will be paid when revenues are declining. What factors should you co
Calculate the mean, median, mode, variance, and standard deviation for the numeric data. Construct a histogram, pie, or Stem-Leaf Display chart encompassing the mean leadersh
On January 2, 2007, Prebish Corporation issued $1,500,000 of 10% bonds at 97 due December 31, 2016. Legal and other costs of $24,000 were incurred in connection with the iss
The company started and completed 136,000 units during the period, and had an ending work-in-process inventory amounting to 16,200 units, 35% complete. Which of the followin
The following information is taken from Hamilton Township December 31, 2013, trial balance after all adjustments were made for preparation of the government wide financial s
Explain the accounting and reporting for stockholder's equity. How are restrictions on retained earnings reported? What are the key components of stockholder's equity? Indic
For each of the costs incurred in a manufacturing firm, indicate whether the costs are fiXed (F) or variable (V) and whether they are period costs (P) or product costs (M) u