User Account

All Pages

What sales price would have to be charged

Assignment Help Accounting Basics
Reference no: EM132076881

Question - Newman Company currently produces and sells 3,000 units of a product that has a contribution margin of $8 per unit. The company sells the product for a sales price of $22 per unit. Fixed costs are $23,000. The company is considering investing in new technology that would decrease the variable cost per unit to $8 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 8,000 units of product. What sales price would have to be charged to earn a $90,000 target profit assuming the investment in technology is made?

a. 22

b. 8

c. 18

d. 25

Reference no: EM132076881

Questions Cloud

What was the balance of owner equity on november : During November, the net amount increased by $10,000. What was the balance of owner's equity on November 30
Find the profit from operating the shop : Also, the shop will lose ?$65 per day at a sales level of x=0. Find the profit from operating the shop at a sales level of x ties per day.
How can moderation and mediation be used to address : Give an example of potential associations which could be examined with moderation and mediation analyses.
What was the amount of liabilities on december : During the year, assets decreased by $147,000 and liabilities increased by $152,000. What was the amount of liabilities on December 31
What sales price would have to be charged : What sales price would have to be charged to earn a $90,000 target profit assuming the investment in technology is made
How did you determine where growth was needed : Prior to developing your training exercise, you must analyze your organization to identify room for potential growth.
Proportional to the population of the city : The amount of taxes a city collect is proportional to the population of the city. If the city collects $6 billion in 1982 when the population
What are the market risks ltd encounters : LTD is headquartered in Houston, TX. LTD does not sell insurance directly to the public. Instead, it uses third-party agents to sell its policies.
Find the minimum possible cost for such a box : A closed box with a square base is to have a volume of 686?m3. The material for the top and bottom of the box costs $2/m2, and the material for the sides costs

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd