Nashville Sports, Inc., produces high-quality sports equipment and sell their product through their own retail outlets. The company manufactures two dumbbells-the Light and the Heavy. Selected...


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Nashville Sports, Inc., produces high-quality sports equipment and sell their product through their own retail<br>outlets. The company manufactures two dumbbells-the Light and the Heavy. Selected information on the<br>dumbbells is given below:<br>Light<br>Heavy<br>180.00<br>Selling price per a pair of dumbbells<br>Variable expenses per pair:<br>%24<br>100.00 $<br>Production<br>52.00 $<br>72.00<br>Sales commission<br>8%<br>10% of price<br>Total Fixed Cost (for Light and Heavy together)<br>$ 147,000<br>11 The company plans to produce and sell three times as many Light model as Heavy model next month. How<br>units<br>many<br>of Light and Heavy models in total does the company have to sell to break even? (Choose the closest answer.)<br>А.<br>2,100 units<br>2,178 units<br>2,800 units<br>В.<br>С.<br>D.<br>3,015 units<br>E.<br>None of the above<br>Charleston Company produces a headset for kids. The following unit cost information is available:<br>Selling price per game<br>Variable costs per game<br>$ 30.00<br>$ 18.00<br>90,000 units<br>$360,000<br>Current annual sales<br>Current fixed costs<br>The sales manager proposes that for next year, Charleston should reduce the selling price by 5%, increase the quality of<br>direct materials, and increase advertising spending to drastically increase unit sales. The manager expects the following:<br>Proposed new price<br>$28.50<br>Required increase in advertising spending<br>New Variable costs per game<br>2$<br>20,000<br>2$<br>20.00<br>Increase in unit sales<br>40%<br>12 How will net income be impacted?<br>A. Net income will increase by<br>%24<br>9,000<br>$ 20,000<br>B. Net income will decrease by<br>C. Net income will increase by<br>$ 11,000<br>$ 29,000<br>D. Net income will decrease by<br>E. None of the Above<br>%24<br>

Extracted text: Nashville Sports, Inc., produces high-quality sports equipment and sell their product through their own retail outlets. The company manufactures two dumbbells-the Light and the Heavy. Selected information on the dumbbells is given below: Light Heavy 180.00 Selling price per a pair of dumbbells Variable expenses per pair: %24 100.00 $ Production 52.00 $ 72.00 Sales commission 8% 10% of price Total Fixed Cost (for Light and Heavy together) $ 147,000 11 The company plans to produce and sell three times as many Light model as Heavy model next month. How units many of Light and Heavy models in total does the company have to sell to break even? (Choose the closest answer.) А. 2,100 units 2,178 units 2,800 units В. С. D. 3,015 units E. None of the above Charleston Company produces a headset for kids. The following unit cost information is available: Selling price per game Variable costs per game $ 30.00 $ 18.00 90,000 units $360,000 Current annual sales Current fixed costs The sales manager proposes that for next year, Charleston should reduce the selling price by 5%, increase the quality of direct materials, and increase advertising spending to drastically increase unit sales. The manager expects the following: Proposed new price $28.50 Required increase in advertising spending New Variable costs per game 2$ 20,000 2$ 20.00 Increase in unit sales 40% 12 How will net income be impacted? A. Net income will increase by %24 9,000 $ 20,000 B. Net income will decrease by C. Net income will increase by $ 11,000 $ 29,000 D. Net income will decrease by E. None of the Above %24

Jun 11, 2022
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