1.) Based from the computations‚ the total breakeven for the 3 kind of products is 17‚576 units. The difference between the breakeven on shower nozzles and thermostats is almost by 10‚140 units which mean that a lower contribution margin will require more units to be sold to reach its break even. Shower Noozles Thermostats Storm Windows Total Sales Volume 800 220 500 1520 Sales Price 10 80 100 Sales Revenue 8000 17600 50000 75600 Variable Cost 8 70 95 Variable cost
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needed to maintain the profit impact. If you increase any of the fixed cost factors‚ what happens to the number of units the company needs to sell to break even? To the market share necessary to achieve breakeven? It increases the number of units needed to breakeven. It also increases the breakeven market share. What change (increase or decrease) to the following factors increases the Profit Impact? ▪ Retail Margin/Unit - A decrease equals a Profit Impact increase. ▪ Brand Market Share – An increase
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is determined Alpen has to determine what the best way of customer acquisition is: should they go for all entries presented in Table B or should some be eliminated. * Cost – The customer acquisition costs‚ fixed costs‚ variable costs and the breakeven point for required customers. * Processes - Qualification process‚ repayment agreement‚ and interest rates have to be geared towards Romanian social and economic standards. Analysis Given the economic conditions and details described in
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Another important issue for the Nor’easters was Larry’s lack of sport industry experience and the length of time to develop a pricing strategy. Larry had 6 months to develop a pricing strategy for ticket and concession sales that would at least breakeven the first year. The city of Springfield had very little exposure to professional sporting events. Buckingham must be creative in order to create an awareness and loyalty of a minor league team. Analysis and evaluation Strength: • Enter a marketing
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Foxy Originals Team 1: Van-de-lay Industries Ruwanthi Herath‚ Manasa Varalakshmi‚ Gabriela Chassagne‚ James McDougall‚ Aaron Layden Executive Summary Foxy Originals hopes to gain successful market entry into the United States within six months. The U.S. market is significantly larger than the Canadian market that Foxy currently operates in and has substantially less brand loyalty and demand for classic jewelry. Foxy’s two potential methods of market entry are: (1) Tour their products at ten
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Question One Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost of Production: Cost of production is costs incurred by Albatross Anchor when manufacturing an anchor. There are two types of costs – fixed and variable. Variable costs depend on what materials and labor are needed to make the anchor and vary with the volume
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April 2011‚ Tilburg Case 202 The Dublin Shirt Company‚ Peter Clarke‚ University of Dublin Question 1. A calculation of breakeven point (in units) for the year ended 2004. For the purpose of simplifying this calculation‚ you should assume that ONLY direct material and direct labor costs are considered variable with respect to changes in volume. Clearly identify your assumption regarding the sales mix in your calculation and specify why this assumption is important in the context of CPV analysis
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Bill French had gathered information and calculated Break Even Point (BEP) based on few assumptions: 1) Product mix considered constant. 2) Considered that there is just one breakeven point for the company. 3) Fixed and variable cost is assumed to be constant. 4) No inventory. 5) Price assumed to be fixed. Calculation of breakeven point based on assumptions: Table 1: Initial Cost analysis Initial Calculation Aggregates A’ B’ C’ Sales at full capacity (Unit) 2000000 Sales unit 1500000 600000 400000
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$50 instead of $40. If this is done while the costs remain the same‚ what would the new breakeven point be? What would the total revenue be at this breakeven point? (Given in problem 1-19: fc of 2400 and vc of 25) (1-21) Mysi Farris (see problem 1-19) believes that there is a high probability that 120 pool cues can be sold if the selling price is appropriately set. What selling price would cause the breakeven point to be 120? (Given in problem 1-19: fc of 2400 and vc of 25) (1-23) A couple
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are used in a firm’s capital structure. If a high percentage of a firm’s capital structure is in the form of debt and preferred stock‚ then the firm is said to have a high degree of financial leverage. The breakeven point is that level of unit sales at which costs equal revenues. Breakeven analysis may be performed with or without the inclusion of financial costs. If financial
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