Projected Cost Information for a New Product to Be Produced

question 63

Essay

Projected cost information for a new product to be produced by Kolier Manufacturing is as follows:
The product is to be sold for $49.
a.Compute the number of units that must be sold to earn a profit of $80,000.
b.Compute the number of units that must be sold if advertising costs rise by $12,000 and a targeted profit of $120,000 is to be obtained.
c.Use the original information and sales of 10,000 units to compute the new selling price that the company must use to obtain a profit of $200,000.
d.The most in annual sales that could be projected is 20,000 units.Determine the added amount that could be spent on fixed advertising costs if the highest possible selling price that management believes can be charged is $50 and if there is a targeted profit of $225,000.

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Definitions:

Negative Ethical Consequences

Adverse outcomes that arise from actions or decisions that are considered morally wrong, harming individuals or society as a whole.

Morals

People’s adherence to right or wrong behavior and right or wrong thinking.

Right or Wrong Behavior

Actions or conduct judged according to moral principles, ethical standards, or legal guidelines.

Right-to-Work Laws

Laws that prohibit union security agreements between companies and workers' unions, effectively ensuring that union membership is not a requirement for employment in any position.