A Digitized Music Tuner Has Been a Staple in Smooth

question 76

Essay

A digitized music tuner has been a staple in Smooth Sounds' product line for several years.Annual fixed costs of production and administration related to this product in the past have been $643,500.Variable costs of production and sales have been $17 per unit.The selling price in the past has been $28 per unit.Based on the appearance of competing products on the market,management has asked you to do the following:
a.Compute the breakeven point in units and sales dollars for the present product.
b.Compute the breakeven point in units and sales dollars if the variable costs increased by $3 per unit and the fixed costs increased by $14,375 per month.
c.Using the information from (b),an expected additional monthly advertising charge of $10,000,and a monthly sales rate of 15,000 units,compute the competitive selling price that the company must obtain in order to have a profit of $32,000 per month.(Round answers to two decimal places. )

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Definitions:

Psychological Abnormalities

Conditions or disorders that affect a person's thinking, feeling, mood, or behavior, deviating from the cultural norm and causing distress or impairment.

Mystical Powers

Supernatural abilities or phenomena that are beyond the ordinary laws of nature and science, often attributed to magic, spiritual, or other inexplicable forces.

Vital Air

Historically, a term referring to the component of air believed to be crucial for life, often associated with oxygen.

Positive Force

An influence or factor that contributes to a beneficial outcome or fosters positive change.