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Homework 7A

Homework 7A

Q 1.The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $48.44. The variable cost per unit is $25.69, Poseidon Swim has average fixed costs per year of $32,799. What is the break-even point in units for Poseidon Swim? Round the answer to the whole number. 2.The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $45.61. The variable cost per unit is $18.47, Poseidon Swim has average fixed costs per year of $23,948. What is the break-even point in dollar sales? 3.The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $71.18. The variable cost per unit is $21.90, Poseidon Swim has average fixed costs per year of $14,789. What would be the operating profit or loss associated with the production and sale of 476 swim trunks? 4.The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $62.89. The variable cost per unit is $24.50, Poseidon Swim has average fixed costs per year of $6,619. Determine the degree of operating leverage for the level of production and sales 355 swim trunks. Round the answer to two decimal places. 5.The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $68.13. The variable cost per unit is $26.29, Poseidon Swim has average fixed costs per year of $7,492. Assume that current level of sales is 343 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by 4.2 percent? (You should calculate the degree of operating leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimal places.

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1. 1,442 2. 40,245.7 3. 8,668.28