JBeats produce and sell a product that has variable costs of $33 and a selling price...

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Accounting

JBeats produce and sell a product that has variable costs of $33and a selling price of $68 . Its current sales total $204,000 permonth. Fixed manufacturing costs total $25,000 per month and fixedselling and administrative costs total $17,000 per month. Thecompany is considering a proposal that will increase the sellingprice by 5%, increase the fixed manufacturing costs by 5%, andincrease the fixed selling and administrative costs by $3,500. A.Compute JBeats’s current break-even point in units. B. ComputeJBeats’s margin of safety in dollars. C. Compute JBeats’ss netincome. D. Compute JBeats’s breakeven point in units assuming theyaccept the proposal. E. Compute JBeats’s net income assuming theyaccept the proposal and sales total 3,300. Label and place yourfinal answer for A-E at the top of the answer box. Then after theanswer to E, label and show your work for each part of thequestion. Just show me numbers – that is usually enough for me tofollow your logic.

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3.6 Ratings (485 Votes)

A BEP in Units 1200 Units B Margin of safety in dollars 122400 C Net Income 63000 D Proposed BEP in Units 1217 Units E Proposed Net Income 79970 A BEP in Units Fixed Cost Sale price per unit Vriable cost per unit Fixed Cost Fixed Manufacturing See Answer

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