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1. The annual profit budget of the Parker Co. shows: Net income – – Sales (30,000 u nits @ $3)… 1 answer below » 1. The annual profit budget of the Parker Co. shows: Net income – – View complete question » Sales (30,000 u nits @ $3) Variable costs: $90,000 Man ufact uring $20,000 1. The annual profit budget of the Parker Co. shows: Net income – – Sales (30,000 u nits @ $3) Variable costs: $90,000 Man ufact uring $20,000 Selling and administrative 7,000 Fixed costs: Man ufact uring 21,000 Selling and administrative 12,000 60,000 $30,000 Answer each part below independently of all other parts. (a) What is t he company`s break-even point in units and in dollars? ( b) The company proposes to buy equipment to replace workers. If this is done, fi increase $3,280 and variable costs will decrease $3,000 when sales are $90,000 new break-even point in units? (c) Assume that fixed costs are increased by $2,000 and variable costs by $1,500 a sales level. How much must sales (in units) be increased to make the same $ How much must sales (in units) be increased to yield a before-tax net income of sales? (d ) The sales manager proposes an increase in unit sales price of 10 percent, with drop of 20 percent in sales volume. If this step is taken, what would be the ex Would you approve this plan ? What would be the new break-even point in u View less » Dec 09 2015 11:30 AM
