View the step-by-step solution to:

Question

# A firm has \$30 per unit in variable costs and \$1,200,000 per year in fixed costs. Demand is estimated to be

104,000 units annually. What the price if a markup of 40% on total cost is used to determine the price?

Round to two decimal places.

Turbo Drive, Inc. produces a hard disk driver that sells for \$175 per unit. cost of producing 25,000 drives in the prior year was:   Direct material\$625,000. Direct labor375,000. Variable overhead125,000 Fixed overhead1,500,000 Total cost. \$2,625,000 the start of the current year, the company received an order for 4,000 drives from a computer company in China. Management of TurboDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only \$125 per unit. What will be the effect on profit of accepting the order?

Round to two decimal places.

Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:

Units Sold. PriceTotal Variable Costs. Fixed Costs

120,000 \$48. \$3,000,00 \$1,000,000

141,000. \$45. \$3,540,000 \$1,000,000

160,000 \$40. \$4,000,000. \$1,000,000

180,000 \$35 \$4,500,000. \$1,000,000

200,000. \$30 \$5,000,000 \$1,000,000

How much profit will Troy have if a price of \$45 is charged?

Round to two decimal places.

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents