Business, 18.03.2021 01:10, justabeachbum

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 44,000 speaker sets: Sales $3,608,000
Variable costs 902,000
Fixed costs 2,310,000

Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,988,000. (In the following requirements, ignore income taxes.)

Required:
a. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
b. Determine the break-even point in speaker sets if operations are shifted to Mexico.
c. If variable costs remain constant, by how much must fixed costs change?

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Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following...