Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the company expects to sell 10,000 units. the vari

The company expects to sell 10,000 units. The variable cost per unit is UGX. 1,000...

50.1K

Verified Solution

Question

Accounting

The company expects to sell 10,000 units. The variable cost per unit is UGX. 1,000 and annual fixed costs of UGX. 20,000,000.

Required:

  1. What price would be charged to break-even at a given level of activity?
  2. Using the price calculated in (a) above, determine the number of units that should be sold to yield a desired profit of UGX. 1,000,000.
  3. What is the profit that will result from 10% reduction in variable cost per unit and UGX. 5,000,000 decreases in fixed costs assuming the current sales in (a) above will be maintained?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

I 21 8 0 Enter your answer in INTERVAL notation using U to indicate a...

Basic Math
1.2K views

You want to obtain a sample to estimate a population mean. Based on previous evidence, you...

Chemistry
1.2K views

Remember the expert uses the numbers in the problem rounded to the correct significant digits. The...

Biology
1.2K views

A plant cell that contains 80% water in the cytoplasm has been flooded with 40% saltwater....

Psychology
1.2K views

There are many factors in the drug laws that influence addiction. Use the information you gained...

Physics
1.2K views

Two moles of helium are initially at a temperature of 29.0 ∘C and occupy a volume...

Biology
1.2K views

Please list and explain the 3 main types of chemical bonds

Basic Math
1.2K views

1 1 42 points Check my work mode This shows what is correct or incorrect...

Basic Math
1.2K views

2 Which of the following sets of ordered pairsrepresents a relation that is not a...

Accounting
1.2K views

19) Which of the following is a stakeholder of an organization? -The accounts receivable clerk...

Accounting
1.2K views

Silver Company makes a product that is very popular as a Mothers Day gift. Thus,...

Finance
1.2K views

The Campbell Company is considering adding a robotic paint sprayer to its production line. The...