Cost Behavior, Operating Leverage, and Profitability Analysis. Cost Accumulation, Tracing, and Allocation.
Problem #1 Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable costs of each mower total $160 while total monthly fixed costs are $22,500. Current monthly sales are $100,000. The company is considering a proposal that will increase the selling price by 10%, increase total fixed costs by