Break Even Analysis Case

BREAK-EVEN ANALYSIS Question 1: a) Contribution per building discontinue to WB: expense Variable tolls= Contribution/unit 12 (0,50 + 2,20 + 0,75) ------------------------------------------------- Contribution per unit to WB= 8,55 $/unit b) Break-even heap in Disc units and horse: The break-even volume in disc units is Q* Q* = FC / (P unit of measurement Variable Cost) Q* = FC / Contribution per unit Q* = (175000 + 250000) / 8,55 ------------------------------------------------- Q* = 49707,60 units The break-even betoken in dollar is: Q** = FC / (1- ( UVC / P)) Q** = (175000 + 250000) / (1- (3,45/12)) ------------------------------------------------- Q** = 596491,228 $ c) bread profit if 1.

2 million Discs be so If Q* = 1200000 units dismiss Profit= Sales UVC FC Net Profit = (12* 1200000) (3,45* 1200000) (175000+ 250000) ------------------------------------------------- Net Profit = 9835000 $ d) Necessary unit volume to achieve a 275000$ profit: Unit volume = X 275000 = 12 X 3,45 X (175000 + 250000) 275000= 8,55 X 425000 ------------------------------------------------- X = 81871,345 units Question 2: proceeds embody = 18$/ table shaper interchange price= 158$/ unit Manufacturer allowance= (merchandising determine cost)/ selling depend on Manufacturer permissiveness= (158 18)/ 158 ------------------------------------------------- Manufacturer margin= 88,61% retailer selling price= x retailer cost = 158$/ unit Retailer margin= 87% Retailer selling price= cost / 1- Margin Retailer selling price= 158 / 1-0,87 ---------------------------------------- --------- Retailer selling price= 1215,38 $! spic-and-span production cost= 18 + 21% hot production cost= 21,78 $/unit New Manufacturer selling price = 21,78/ 1- 0,8861 New man SP= 191,22 $/unit New retailer selling price= 191,22/ 1-0,87 ------------------------------------------------- New Ret marketing Price= 1470,92 $/ Table Question 3: a) - Rash out: Gross...If you want to get a full phase of the dream essay, order it on our website: OrderEssay.net

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