Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.
Sales price $ per unit
Variable costs per unit
Fixed costs per year
Assume that the projected number of units sold for the year is Consider requirements bc and d independently of each other.
Required:
AWhat will the operating profit be
BWhat is the impact on operating profit if the sales price decreases by percent? Increases by percent?
CWhat is the impact on operating profit if variable costs per unit decrease by percent? Increase by percent?
DSuppose that fixed costs for the year are percent lower than projected, and variable costs per unit are percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up Down? By how much?
Please do all part ad will rate!
