Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:
Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:
Units Sold Price Total Variable Costs Fixed Costs
120,000$ 48 $3,000,000 $1,000,000
146,500 $45 $3,540,000 $1,000,000
160,000 $40 $4,000,000 $1,000,000
180,000 $35 $4,500,000 $1,000,000
200,000 $30 $5,000,000 $1,000,000
How much profit will Troy have if a price of $45 is charged?
The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the globe will be $66 per unit and fixed costs per year will be $240,000.
Assuming sales of 1,200 units, what is the full selling price of a globe with a 0.30 markup?
A company believes it can sell 6,000,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?
A company has $45 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 108,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
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