Beacon Company Makes a Product That Has a Variable Cost

question 120

Essay

Beacon Company makes a product that has a variable cost of $25 per unit and a selling price of $45 per unit.Annual fixed costs total $860,000.Beacon's net income last year was $240,000.Beacon's management is considering lowering the selling price to $35.
Required:
1)How many units did Beacon sell last year?
2)If Beacon Company wants to maintain the same level of income that it had last year,how many units would it have to sell at the new selling price of $35?

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Definitions:

Axis of Motion

Refers to the direction along which an object moves or is controlled, commonly used in robotics and CNC machinery for specifying movement.

PLC Motion Control System

A system utilized within a Programmable Logic Controller (PLC) to govern the movement and positioning of machines or mechanical parts.

Stepper Motor

A type of electric motor that moves in discrete steps, allowing precise control of position and speed, often used in automation and robotics.

Serial Data Transmission

The process of transmitting data one bit at a time, sequentially, over a communication channel.