Answer:
$7.73
$131,450
$9,500
$9.44
$12.44
$4,590
$107,600
$-1,620
Step-by-step explanation:
Let's take it one at a time. To find the fixed costs per unit, we use the formula.
[tex]FixedCostPerUnit=\dfrac{FixedCosts}{ForecastUnitSales}[/tex]
So our variables are.
Fixed Costs = $85,000
Forecast = 11,000 units
Now we compute.
[tex]FixedCostPerUnit=\dfrac{85,000}{11,000}[/tex]
[tex]FixedCostPerUnit=$7.73[/tex]
Now for the Gross Sales, we simply take the selling price per unit and multiply it to the forecast unit sales.
GrossSales = Selling Price x Forecast Unit Sales
GrossSales = $11.95 x 11,000
GrossSales = $131,450
To compute for the possible net profit, we use the formula:
[tex]NetProfit=(SellingPrice-TotalCostPerUnit)*ForecastUnitSales[/tex]
SellingPrice = $12.45
TotalCostPerUnit = $11.50
ForecastUnitSales = 10,000
NetProfit = (12.45 - 11.50) x 10,000
NetProfit = 0.95 x 10,000
NetProfit = $9,500
[tex]FixedCostPerUnit=\dfrac{FixedCosts}{ForecastUnitSales}[/tex]
FixedCosts = $85,000
ForecastUnitSales = 9,000
[tex]FixedCostPerUnit=\dfrac{85,000}{9,000}[/tex]
FixedCostPerUnit = $9.44
Now that we have our Fixed Cost Per Unit we simply add our Variable Cost to get the Total Cost Per Unit.
TotalCostPerUnit = FixedCostPerUnit + VariableCost
TotalCostPerUnit = $9.44 + $3.00
TotalCostPerUnit = $12.44
Now for the Net Profit.
[tex]NetProfit=(SellingPrice-TotalCostPerUnit)*ForecastUnitSales[/tex]
SellingPrice = $12.95
TotalCostPerUnit = $12.44
ForecastUnitSales = 9,000
NetProfit = (12.95 - 12.44) x 9,000
NetProfit = 0.51 x 9,000
NetProfit = $4,590
Now we're looking for Gross Sales again, so we use:
GrossSales = Selling Price x Forecast Unit Sales
GrossSales = $13.45 x 8,000
GrossSales = $107,600
[tex]NetProfit=(SellingPrice-TotalCostPerUnit)*ForecastUnitSales[/tex]
SellingPrice = $13.45
TotalCostPerUnit = $13.63
ForecastUnitSales = 8,000
NetProfit = (13.45 - 13.63) x 8,000
NetProfit = -0.18 x 9,000
NetProfit = $-1,620
So we can see that we have a profit loss at 8,000 units and a selling price of $13.45
