Beacon Company Makes a Product That Has a Variable Cost

question 9

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 $40.
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:

Georgia

A state in the southeastern United States, established as a British colony in 1732, known for its diverse geography from beaches to mountains.

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Individuals or entities involved in the cultivation of cotton plants, which is a significant agricultural activity in regions with suitable climates for this crop.

White Miners

Refers to the labor force comprising predominantly of white individuals working in the mining industry, often associated with historical mining operations in various parts of the world.

Jackson's View

The political and personal viewpoints of Andrew Jackson, the seventh President of the United States, including his support for the common man and his role in the Indian Removal Act.