Acme Company plans to produce and sell a new product for $14…

Acme Company plans to produce and sell a new product for $140 per unit. Acme has enough existing capacity to produce 4,800 units per year at a variable cost of $80 per unit and total fixed costs of $330,000 per year. If necessary, Acme can expand its capacity by renting additional space. The annual rent expense would be $28,000 and the variable cost of the units produced in the rented space would be $90 per unit. What is the total number of units that Acme needs to sell to break-even on the new product?

Acme Company produces and sells a single product. During the…

Acme Company produces and sells a single product. During the most recent year, Acme reports sales revenue of $240,000 (16,000 units), total fixed costs of $64,000, and a break-even point in terms of sales revenue of $192,000. Due to changes in the marketplace, Acme expects that its per-unit variable costs will increase by 10% and its per-unit selling price will decrease by $2.00 per unit. What is Acme’s new break-even point in terms of sales revenue?

Acme Company makes and sells a single product. Acme’s origin…

Acme Company makes and sells a single product. Acme’s original budget for the upcoming year was to sell 9,000 units at a price of $30 per unit. Variable costs were expected to be $18 per unit and total fixed costs were expected to be $90,000. Management is considering an alternative plan, under which it would reduce the selling price by $1 per unit and increase the amount spent on its annual advertising campaign by $30,000. Management predicts that these actions will increase unit sales by 20%. If management’s projections are accurate, what is the effect of the changes on Acme’s budgeted operating income?