Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hooplah manufactures air-filled pods used in shipp

Hooplah manufactures air-filled pods used in shipping packages. Data for that product are: ...

60.1K

Verified Solution

Question

Accounting

Hooplah manufactures air-filled pods used in shipping packages. Data for that product are:
Sales price per unit $250
Variable cost per unit $180
Fixed expenses for the month $600,000
Currently selling 12,000 units
The chief sustainability officer is considering using a biodegradable packaging which costs
$5 more per unit than the current materials used. If implemented, the team will add $10,000
per month in advertising to make sure customers know how earth-friendly they are. They
believe this could increase customer loyalty, leading to an increase of 2,000 units per month.
a. If the change to sustainable inputs is made, how many units would the company have to
sell to maintain current operating income?
b. Should the company make the change assuming the information provided about expected
changes in units is correct?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

On January? 20, Metropolitan ?Inc., sold 10 million shares of stock in an SEO. The current...

Finance
Q

Epicurus argues there are three primary barriers to happiness. What are these barriers? Be sure to...

Psychology
Q

y'' + 16y = (8)(cos(4t)) y0)= 0 y'(0)= 8 Use Laplace Transforms to solve. Sketch the...

Advance Math
Q

You are to gather information from people in an organization through direct contact. You may supplement...

General Management
Q

26 If p is the density of the material of a wire and othe breaking...

Physics
Q

Maggie used a standard deck of 52 cards and selected a card at random She...

Geometry
Q

Karina put a 300 pair of earrings on layaway by making a 10 down payment...

Geometry
Q

A solution of the first order differential equationy'cos(x+y)+ sin(x+y)/x=e^x-cos(x + y) is(a) sin(x + y)-...

Basic Math
Q

a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b....

Accounting
Q

1: Without Section 351, is transferring property into a corporation in exchange for its stock...

Accounting
Q

Cuerdas para saltar y las cuerdas para saber Pregunta/respuesta de la 8 edicin Captulo 32:...

Accounting
Q

Question Completion Status: > A Moving to the next question prevents changes to this answer...

Finance