Solution-Estimate what was company net profit for the

Estimate what was company net profit for the previous year

Assignment Help Managerial Accounting

Reference no: EM132591161

CVP analysis and decisions: manufacturer

Lucid Images Ltd manufactures premium high definition televisions. The firm's fixed costs are $4 000 000 per year. The variable cost of each TV is $2000, and the TVs are sold for $3000 each. The company sold 5000 TVs during the previous year. (In the following requirements, ignore income taxes.)

Required:

Treat requirements 1 to 4 as independent situations:

Question 1. Calculate the break-even point in units.

Question 2. What will the new break-even point be if fixed costs increase by 10 per cent?

Question 3. What was the company's net profit for the previous year?

Question 4. The sales manager believes that a reduction in the sales price to $2500 will result in orders for 1200 more TVs each year. What will the break-even point be if the price is changed?

Question 5. Should the price change discussed in requirement 4 be made? Explain.

Reference no: EM132591161

Questions Cloud

Prepare the applicable statement of cash flow : As of December 31, 2018, Cash was $2,300. Prepare the applicable (entire) Statement of Cash Flow (Indirect Method all proper formatting required).

Make a cash budget for each of the calendar months of june : Make a CASH BUDGET for each of the calendar months of June and July (yes, just 2 months. Hint, set up two columns, one for each month)

How develop the standard cost for the direct cost components : How Develop the standard cost for the direct cost components of a 10-gallon batch of raspberry sherbet. For each direct cost component

Which division is more profitable : Would EVA more clearly show the relative contribution of the two divisions to the company as a whole?Which division is more profitable?

Estimate what was company net profit for the previous year : How Estimate What will the new break-even point be if fixed costs increase by 10 per cent? What was the company's net profit for the previous year?

Explain the operating profit margin and asset turnover : Explain the operating profit margin and asset turnover, and explain how each of these ratios can be used to help division managers improve ROI.

Should labor variances be based on the planned volume : Should labor variances be based on the planned volume of 8,000 dolls or the actual volume of 9,000 dolls? Make a table that shows the standard labor price

?What will be the projected direct material and labor needs : ?What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units, assuming Power Company applies

How can canary encourage sales people to promote : If there is a machine breakdown, which model is the most profitable to produce? Why?How can Canary encourage sales people to promote the more profitable model

User Account

All Pages

Estimate what was company net profit for the previous year

Reference no: EM132591161

Reference no: EM132591161

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT