Hall company had sales in 2010 of 1500000 on 60000 units

Assignment Help Accounting Basics

Reference no: EM13606018

Hall Company had sales in 2010 of $1,500,000 on 60,000 units. Variable costs totaled $720,000, and fixed costs totaled $400,000.A new raw material is available that will decrease the variable costs per unit by 25% (or $3.00). However, to process the new raw material, fixed operating costs will increase by $150,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.

Complete the CVP income statement for 2010, (a) assuming the changes have not been made and (b) assuming the changes are made as described. (For the per unit amounts round to 2 decimal places, e.g. 25.50. All other amounts round to 0 decimal places, e.g. 550,000.)

Reference no: EM13606018

Questions Cloud

Illustrate the effect on the accounts and financial : the following information about the payroll for the week ended march 17 obtained from the records of butte mining co

Machine manufacturers inc projected sales of 66000 machines : machine manufacturers inc. projected sales of 66000 machines for 2008. the estimated january 1 2008 inventory is 6500

The spring constant is k8 lbin and the tension in the cable : a 6-lb block is attached to a cable and to a spring vertically the cable above and the spring below. the spring

The length of time in seconds that a user views a page on a : the length of time in seconds that a user views a page on a web site before moving to anotherpage is a lognormal random

Hall company had sales in 2010 of 1500000 on 60000 units : hall company had sales in 2010 of 1500000 on 60000 units. variable costs totaled 720000 and fixed costs totaled

Shulas 347 grill has budgeted the following costs for a : shulas 347 grill has budgeted the following costs for a month in which 1600 steak dinners will be produced and sold

Interpret the meaning of the slope in this problem predict : a critically important aspect of customer service in a supermarket is the waiting time at the checkout defined as the

Graded index fiber in fiber optics helloim studying phd so : hello ltbrgti3939m studying phd so i want a high advance research paper title graded index fiber . i want my research

Asmall object which has a charge q 82 microc and mass m : a small object which has a charge q 8.2 microc and mass m 9.80 x10-5 kg is placed in a constant electric field.

User Account

All Pages