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. Compute JBeats’s margin of safety in dollars.
C. Compute JBeats’ss net income.
D. Compute JBeats’s breakeven point in units assuming theyaccept the proposal.
E. Compute JBeats’s net income assuming they accept the proposaland sales total 3,300.
Label and place your final answer for A-E at the top of theanswer box. Then after the answer to E, label and show your workfor each part of the question. Just show me numbers – that isusually enough for me to follow your logic.

Answer & Explanation Solved by verified expert

4.3 Ratings (549 Votes)

All working forms part of the answer A A Sale price per unit 68 B Variable Cost per unit 33 C A B Contribution margin per unit 35 D 25000 17000 Total Fixed Cost 42000 E DC See Answer

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