Reference no: EM133189346
Questions -
Q1. As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales of $80,000. The firm has a per unit sales price of $20. Variable costs for the firm are $14 per unit. The total fixed costs for the firm equal $12,000. What is the percentage margin of safety for the firm?
Q2. As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales of $80,000. The firm has a per unit sales price of $20. Variable costs for the firm are $14 per unit. The total fixed costs for the firm equal $12,000. What are the sales in units required to earn a $24,000 profit?
Q3. As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales of $80,000. The firm has a per unit sales price of $20. Variable costs for the firm are $14 per unit. The total fixed costs for the firm equal $12,000. What are the additional sales (meaning incremental sales only) needed to exactly cover the cost of a $60,000 increase in advertising?
Q4. As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales of $80,000. The firm has a per unit sales price of $20. Variable costs for the firm are $14 per unit. The total fixed costs for the firm equal $12,000. What is the required selling price in dollars per unit necessary to achieve break-even (with no profit or changes in cost assumed) assuming that 4800 units are sold?
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