Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. Its income statement is as follows: Sales $189,000,000
Cost of goods sold (100,000,000)
Gross profit $89,000,000
Expenses:
Selling expenses $16,000,000
Administrative expenses 14,000,000
Total expenses (30,000,000)
Operating income $59,000,000

The division of costs between variable and fixed is as follows:

Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses 50% 50%

Management is considering a plant expansion program for the following year that will permit an increase of $9,450,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs.

Required:
a. Determine the total variable costs and the total fixed costs for the current year.
b. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
c. Compute the break-even sales (units) for the current year.
d. Determine the maximum operating income possible with the expanded plant.

Which of the following housing decisions provides a person with both housing and an investment? a. selling a share in a cooperative. b. buying a single-family home. c. renting an apartment. d. subletting a condominium. 2b2t

Social computing forces companies to deal with customers as opposed to

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.