Lush Lawn, Inc. produces and sells electric lawn trimmers for $120 each. The variable costs of each mower total $80 while total monthly fixed costs are $6,000. Current monthly sales are $48,000. The company is considering a proposal that will decrease the selling price by 10%, increase monthly fixed costs by 50% and increase unit sales to 450 units per month.
1)compute the company’s current break even point in units and dollars before the proposal
2)what is the company’s current margin of safety in units and sales dollars and percentage before proposal
3)compute the company’s new break even point in units and dollars assuming the proposal is accepted
4)compute the company’s margin of safety in units assuming the proposal is accepted
5)compute the increase or decrease in profit assuming the proposal is accepted
Lush Lawn, Inc. produces and sells electric lawn trimmers for $120 each. The variable costs ofeach mower total $80 while total monthly fixed costs are $6,000. Current monthly sales are$48,000….
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more