Your regular price is $30/unit, unit variable cost is $20/unit and fixed costs are $3,000 per month. Because of the recession, your sales have dropped to 200 units a month, so you are losing money. You are considering two options to increase sales:
(1) reduce the price to $28/unit, or
(2) run an advertising campaign, which will cost you $300 a month, but keep the price at $30/unit.
In both scenarios, you estimate that sales will increase by 20%, from 200 to 240 units per month.

Required:

a) Compute total revenues, costs and profits under the status quo (original situation), and for each of the two new options.

b) Based on your results in (a), what should you do: do nothing, reduce the price or run the advertising campaign?
(enter 1 for "do nothing", 2 for "reduce price", 3 for "advertising")

c) If you solved (a) and (b) correctly, you are still losing money despite choosing the best option. Should you shut down your business in the short term? Explain why or why not.

With q7 assume the sweet company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. and for q 10,11,13,and 14,assume that the company use department predetermined overhead rates with machine-hours as the allocation bade in both departements.7. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answers to nearest whole dollar.)total price for the job for job p -job q selling price per unit for job p q . how much manufacturing overhead was applied from the molding department to job p and how much was applied to job q? (do not round intermediate calculations.) job p job q manufacturing overhead applied for job p for job q . how much manufacturing overhead was applied from the fabrication department to job p and how much was applied to job q? (do not round intermediate calculations.)job p job q manufacturing overhead applied for job p for job q . if job q included 30 units, what was its unit product cost? (do not round intermediate calculations. round your final answer to nearest whole dollar.)14. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answer to nearest whole dollar.)total price for the job p for job q selling price per unit for job p for job q