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The Braggs & Struttin' Company Manufactures an Engine for Carpet

Question 88

Essay

The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below,based on sales of 40,000 units.
A.Calculate the break-even point in units and sales dollars.
B.Calculate the safety margin (in dollars).
C.Braggs & Struttin' received an order for 6,000 units at a price of $25.00.There will be no increase in fixed costs,but variable costs will be reduced by $0.54 per unit because of cheaper packaging.Determine the projected increase or decrease in profit from the order,assuming there is no opportunity costs.
The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the  Snooper.  Budgeted cost and revenue data for the  Snooper  are given below,based on sales of 40,000 units. A.Calculate the break-even point in units and sales dollars. B.Calculate the safety margin (in dollars). C.Braggs & Struttin' received an order for 6,000 units at a price of $25.00.There will be no increase in fixed costs,but variable costs will be reduced by $0.54 per unit because of cheaper packaging.Determine the projected increase or decrease in profit from the order,assuming there is no opportunity costs.

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Cost of goods sold consists of $810,00...

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