Star Boy Company sells a single product, Product X. Last year, sales revenue amounted to P700,000 and total variable and fixed costs amounted to P420,000 and P210,000, respectively. The products were sold at P7 per unit A study was made by the sales manager. It disclosed that the unit selling price could be increased by 20% but with a corresponding decrease by 15% of the volume sold. If Star Boy Company incorporates the changes in its next year forecast, what is the income for Product X?
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Star Boy Company sells a single product, Product X. Last year, sales revenue amounted to P700,000
and total variable and fixed costs amounted to P420,000 and P210,000, respectively. The products
were sold at P7 per unit
A study was made by the sales manager. It disclosed that the unit selling price could be increased by
20% but with a corresponding decrease by 15% of the volume sold. If Star Boy Company
incorporates the changes in its next year
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- Last year Minden Company introduced a new product and sold 25,500 units of it at a price of $90 per unit. The product's variable expenses are $60 per unit and its fixed expenses are $831,300 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break - even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?Pls show solutions. Loren Company's single product has a selling price of $15 per unit. Last year the company reported total variable expenses of $180,000, fixed expenses of $90,000, and a net operating income of $30,000. A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%. If her proposal is adopted, net operating income would?Naylor Company produces a product that has a variable cost of Rs. 13 per unit; the product sells for Rs. 28 per unit. The company’s annual fixed costs total Rs. 375,000; it had net income of Rs. 75,000 in the previous year. In an effort to increase the company’s market share, management is considering lowering the selling price to Rs. 25 per unit. Required: If Naylor desires to maintain net income of Rs. 75,000, how many additional units must it sell to justify the price decline?