User Account

All Pages

What will be herzogs new breakeven point in units

Assignment Help Financial Accounting
Reference no: EM13516899

Herzog Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year.

XL-709

CD-918

Sales price

$10.00

$25.00

Variable cost

6.00

17.00

Sales volume

40,000 units

60,000 units

Required

  1. How many units of each product must Herzog Industries sell in order to break even?
  2. Herzog"s vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Herzog"s new breakeven point in units?
  3. Returning to the original information, Herzog"s vice president of marketing believes that spending $60,000 on a new advertising campaign will increase sales of component CD-918 to 80,000 units, without affecting the sales of product XL-709. How many units of each product must Herzog sell to break even under this new scenario?
  4. The market changes referred to in part (b) indicate additional overall demand for component XL-709. Herzog"s vice president of marketing believes that if the company spends $60,000 to advertise component XL-709 rather than CD-918, as planned in part (c), the company will be able to sell a total of 50,000 units of XL-709 at the new price of $14.00. If the company must choose to advertise only one component, which component should receive the additional $60,000 in advertising?

Reference no: EM13516899

Questions Cloud

How fast are these protons moving : A cyclotron particle accelerator (sometimes called an "atom smasher" in the popular press) is a device for accelerating charged particles, How fast are these protons moving when they hit the tumor
Resurgence of islamic fundamentalism : There has been a resurgence of Islamic Fundamentalism (or revivalism) in Afghanistan, Iran and other parts of the Muslim world. Explain what you feel is the cause of this resurgence and whether you believe liberal democracy requires secularization of..
Explain a weak acid was dissolved in enough water : A 10 gram sample of the ionic compound NaA, where A is the anion of a weak acid was dissolved in enough water to make 100 ml of solution and was then titrated with 0.1 M HCL
How many equally spaced turns must it have : How many equally spaced turns must it have so that it will produce a magnetic field of 3.75mT at points within the coils 14.0cm from its center
What will be herzogs new breakeven point in units : Herzogs vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Herzogs new breakeven point in units?
Prepare a contribution format income statement : Prepare a contribution format income statement for the Robinson Company.
Describe the prevailing arguments : Describe the prevailing arguments of what constitutes a "just war," and assess the justice of the Vietnam War in that context. Speculate on how the world would be different today if the U.S. had not become involved in Vietnam.
Identify each expense as fixed-variable,or mixed : Identify each expense as fixed, variable, or mixed and prepare a contribution margin income statement based on a volume of 5,000 windows.
What is the unknown batterys voltage : When a 9.0 V battery is connected to a capacitor, it puts 8.00e-4 C of charge on the capacitor. What is the unknown battery's voltage

Reviews

Write a Review

Financial Accounting Questions & Answers

  Janice morgan age 32 is single and has no dependents she is

janice morgan age 32 is single and has no dependents. she is a freelance writer. in january 2011 janice opened her own

  Purpose a statement of cash flows

Purpose a statement of cash flows. Use the indirect method of reporting cash flows from operating activities

  Bond discount entries for bonds payable transactionson july

bond discount entries for bonds payable transactions.on july 1 2010 brower industries inc. issued 32000000 of 10-year

  Allocation of net income in each of the situations

Prepare a schedule showing the distribution of net income, assuming net income is (1) $50,000 and (2) $36,000 and journalize the allocation of net income in each of the situations

  Which of the two financing plans is the least expensive

Which of the two financing plans is the least expensive (i.e., has the lowest net present value if your cost of capital is 12 percent)? Ignore reimbursement and tax considerations.

  Statement of cash flows1 choose the combination that best

statement of cash flows1. choose the combination that best reflects the appropriate classification of cash received

  Prepare a 20x8 consolidated income statement for insure

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure us..

  What is the required rate of return

The growth rate in dividends is expected to be constant at 4% per year. If the stock is selling for $50 per share, what is the required rate of return?

  Evaluate forward contract hedge

What is the total increase or decrease in cash flow from having entered into this forward contract hedge?

  Estimated total future cash flows

At the beginning of 2013, based on new marketing research, Barkley determines that the fair value of the trade name is $24,000. Estimated total future cash flows from the trade name are $26,000 on January 4, 2013.

  Determine short-run average variable cost and marginal cost

For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs. E. Determine short-run average variable cost and marginal cost at the output level obtained in Part (D).

  Compute the expected production in the new year quarter

A company’s data is presented below. Desired ending inventory is a consistent percentage of the next quarter’s sales and the previous year's 4th quarter ending inventory of 560 units meets this requirement.Compute the expected production in the ne..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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