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Business, 22.02.2020 04:37 Hfruit

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assuresmanagement that it can sell between 9,000and 13,000units of either product this’ year. Because the models are verysimilar, the company will produce only one of the two models. The following information was compiled by the accountingdepartment--lling price per unit 5 88.00 $80.00ariable casts per unit 5280 5280Fixed costs will total $369,600 if the mountaineering model is produced but will be only 8 316,800 if the touring model isproduced- Alpine Thrills Ski Company is subject to a 40 percent income tax rate. (Round each answer to the nearest wholenumber.)Required:1- Compute the contribution-margin ratio for the touring model.2 If Alpine Thrills Ski Company desires an after-tax net income of S 2080. how many pairs of touring skis will thecompany have to sell?3. How much would the variable cost per unit of the touring model have to change before it had the same break-evenpoint in units as the mountaineering mode?4. Suppose the variable cost per unit of touring skis decreases by 10 percent. and the total fixed cost of touring skisincreases by 10percent Compute the new break-even point5. Suppose management decided to produce both products- Ifthe two models are sold in equal proportions- and totalfixed costs amount to S 343,200, what is the firm ’5 break-even point in units?

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