Why does this change occur

Assignment Help Managerial Accounting
Reference no: EM13956638

The chief engineer at Future Tech has proposed production of a high-tech portable electronic storage device to be sold at a 30 percent markup above its full cost. Management estimates that the fixed costs per year will be $180,000, and the variable cost of the storage device will be $10 per unit.

Required:

a. Assuming sales of 60,000 units, what is the full cost of a storage device, and what is the price with a 30 percent markup?

b. Assume that the quantity demanded at the price calculated in part a is only 40,000 units. What is the full cost of the storage device, and what is the price with a 30 percent markup?

c. Compare the selling prices computed in parts a and b; does the selling price increase, decrease, or stay the same when the number of units produced and sold decreases? Why does this change occur? 

Reference no: EM13956638

Questions Cloud

What is the full cost of the globe : Assume that the quantity demanded at the price calculated in part is only 600 units. What is the full cost of the globe, and what is the price with a 25 percent markup?
What force water exert on vehicle observation window : The Mariana trench is located in the Pacific Ocean at a depth of about 11900 m below the surface of the water. The density of seawater is 1025 kg/m3. If an underwater vehicle were to explore such a depth, what force would the water exert on the ve..
Calculate the static frictional force on the slab : A rectangular slab (43m x 12m x 2.5m) of slate rests on a 26 degree incline. The density of the slab is 3.2 x 10^3 kg/m^3. The coefficient of static friction between the slab & the plane is 0.36. Calculate the component of the slab's weight acting ..
Calculate the least square estimates of intercept : 1. Calculate the least square estimates of the intercept and slope of the regression line of Y on X. 2. Specify the regression equation using your calculated estimates.
Why does this change occur : Compare the selling prices computed in parts a and b; does the selling price increase, decrease, or stay the same when the number of units produced and sold decreases? Why does this change occur?
Find the magnitude and direction of the third force : A force of magnitude 100N is directed N, and a second force of 200N 30 degrees East of North. Find the magnitude and direction of the third force that when added to the first two force gives a resultant where magnitude is zero.
What is the probality that you will draw a dime : you are rolling a pair of dice, one red and one green. what is the probability of the following outcomes. a.the sum of the two numbers you roll is 11 b. the sum of the two numbers you roll is 7 c. the sum of the two numbers you roll is 13
Find resultant of this force system using analytic method : Three forces 300N, 500N, and 600N respectively, act of an angle of 120° from each other, find the resultant of this force system using the analytic method of the 300N force is acting along the x-axis.
CFD prediction of separated flow over a simplified car model : Apply a modern computational fluid dynamics (CFD) (ANSYS CFX) approach for solving airflow over two- and three-dimensional Ahmed car model in order to explore the flow behaviour and to understand the underlying flow physics related to the flow pro..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  High-low method of cost estimation

Describe how the high-low method of cost estimation can be used in estimating the fixed cost component of a mixed cost in a business.

  Journalize the annual adjusting entries

Journalize the annual adjusting entries that were made - prepare an income statement and a retained earnings statement for the year ending December 31, 2011, and a balance sheet at December 31.

  Show what are likely to be variable costs for an airline

show what are likely to be variable costs for an airline such as southwest air. also what are likely to be the fixed

  Direct costs of the brentwood store

The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores - what is the total amount of the costs listed above that are not direct costs of the Brentwood Store?

  Explain the four performance perspectives included

Adria Lopez's two departments, computer consulting services and computer workstation furniture manufacturing, have each been profitable

  Prepare journal entries to summarize the 2009 transactions

Prepare journal entries to summarize the 2009 transactions. As your final entry, dispose of the year-end under- or over allocated manufacturing overhead as a write-off to Cost of Goods Sold.

  Manufacturing cost schedule and income statement

Manufacturing Cost Schedule and Income Statement - prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter Manufacturing Co from the information provided.

  Intro to management accounting please make sure the

please make sure the assignment is according to the required criteria and complete in all respects

  Determine the estimated warranty liability at december

Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $15,000.)

  Questiona firm believes it can generate an additional

questiona firm believes it can generate an additional 250000 per year in revenues for the next 5 years if it replaces

  Changes in cash conversion cycle

Bello Corp. has annual sales of $50,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The company makes all purchases on credit and has always paid on the 30th day.

  Prepare the journal entry to close the balance

Prepare the journal entry to close the balance in manufacturing overhead to cost of goods sold.

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!

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