I need help with part 10 and 11 of this question QUESTION 8 S&P Supply sells onl
ID: 2334648 • Letter: I
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I need help with part 10 and 11 of this question
QUESTION 8 S&P Supply sells only two products, Product S and Product P Product S $25 $20 Product P $50 $30 Selling price per unit Variable cost per unit $270,000 The tax rate is 20%. What is the firm's breakeven sales in dollars, assuming it sells one unit of Product S for every two units of Product P? QUESTION 9 Suppose the firm generated the amount of salos in dollars neoded to break even assuming a sales mix of 1 unit of Product S for every two units of Product P. If the firm's actual sales mix was 1 unit of Product S for every throe units of Product P, total profits would be: O POSITIVE NEGATIVE ZERO NOT ENOUGH INFORMATION QUESTION 10 The firm is considering an advertising campaign to increaso salos of Product P at a cost of $80,000. What is the minimum number of adcitional sales in units the campaign would need to genorato in ordor to not decrease the firm's profits? QUESTION 11 If the firms actual pro-tax profits were $90,000 with a sales mik of 1 unit of Product S for every two units of Product P, what was total revenue from Product P?Explanation / Answer
Q10. Selling price of Product P: 50 Less: Variable cost 30 Contribution margin per unit 20 Additional Advertisement cost: 60000 Divide: CM per unit of P 20 Additional number of units to be sold 3000 Q11. S P Total Selling price per unit 25 50 Less: Vvariable cost per unit 20 30 Contribution margin per unit 5 20 Sales mix 1 2 Total contribution per sales mix 5 40 45 Total desired contribution; Fixed cost 270,000 Add: Desired pre-tax profits 90000 Desired contribution 360,000 Divide: CM per sales mix 45 Number of sales mix 8,000 Number of units of P to be sold (8000*2) 16,000 Selling price per unit 50 Sales revenue from Product P 800000
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