Recommendation I recommend that proposal 2 should be chosen‚ because it has maximum profit. It also has the best margin of safety and contribution/sales ratio. In proposal 2‚ an additional product W is added to the mix. So the fixed cost is increased. Although the fixed cost is increased‚ the profit increases sharply. What is noteworthy is that breakeven point is the largest in the 3 situations. It means that the company should take longer time to reach the breakeven point. So the company many
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Marketing Management ZENITH PET FOODS‚ INC. Synopsis The opportunity for Zenith Pet Foods to pursue a market development strategy for Show Circuit Frozen Dog Dinner is described in this case. Food brokers had approached Zenith Pet Foods about the possibility of entering the household dog food market in Boston. They had heard of a similar product being sold in selected pet stores in the southwestern United States and believed that potential existed in selling Show Circuit through supermarkets. The
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For Good And Make Golf Fun Again To All of You Slicers Out There Feeling Hopeless‚ Miserable‚ and Embarrassed About Your Golf Game... Take a moment to picture in your mind what life would be like without slicing. Picture yourself teeing up on the first hole. Picture yourself knowing beforehand that you are going to rip your drive dead-straight down the middle of the fairway. Picture yourself watching your ball land 10 yards farther than the rest of your foursome. Picture yourself looking down at
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My first pet Convincing a family to adopt a pet kitten can prove to be quite troublesome. Owning a pet requires a decent amount of free time and great responsibility. Staying persistent in your endeavors and showing your family just how serious you are can prove to be rewarding in the end. Caring for a pet cat can prove be a major responsibility for an eight year old. Even though I was fully aware that I was far too young to take on the responsibility that comes with owning a pet‚ I was very
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Zenith Pet Foods‚ Inc. In reviewing the Zenith Pet Foods case‚ there are several facts that need to be assessed before offering a definitive answer on whether their potential program for marketing Show Circuit dog food will be successful. Zenith Pet Foods‚ Inc. is a major distributor of dog food for show kennels throughout the United States. The product that Zenith is offering is called Show Circuit‚ which is a highly nutritious and quality ingredient dog food. The product of Show Circuit‚
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Problem In this case about Zenith Pet Foods‚ Inc.‚ a major distributor of dog food for show-dog kennels in the United States‚ we learn that the company is looking to expand its market into the Boston Area. In the beginning of the case we learned that Marketing Momentum Unlimited‚ a marketing and advertising consulting firm‚ is trying to help Zenith with entering in the Boston market. The sale of dog food in the U.S. is $7 billion total sales between the four dog food products offered‚ dry‚ wet‚ semi-moist
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FIN 200 RE: Break Even Analysis A. What is the break-even point in bags? Formula: FC/P – VC $80‚000/$10-5 (0.10 x 50 lbs = $5.00) $80‚000/$5 Break-Even Point would be $16‚000 B. Calculate the profit or loss on 12‚000 bags and on 25‚000 bags 12‚000 bags 12‚000 x $10 = 120‚000 80‚000/$5 x 12‚000 = $80‚000 + $60‚000 = $140‚000 120‚000 – 140‚000 = -20‚000 loss 25‚000 bags 25‚000 x $10 = 250‚000 80‚000/$5 x 25‚000= 80‚000 + 125‚000 = 205‚000 250‚000 – 205‚000 = 45‚000
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Margin and Break Even Point by ACC 202 Trident University July 22‚ 2011 Contribution Margin and Break Even Point I’m going to discuss Contribution margin and what it is and how it relates to companies and profits. Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It is the amount available to cover fixed expenses such as lease agreements and then to provide profits for the period. Contribution margin is first used to cover
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CVP ANALYSIS / BREAK EVEN ANALYSIS Break-Even Analysis Introduction Break-Even Analysis-Volume-Analysis is a systematic method of examining the relationship between changes in volume (that is output) and changes in Sales Revenue‚ Express and Net Profit. As a model of these relationships‚ Break-Even Analysis simpifies the real-world conditions which a firm will face. The objective of Break-Even Analysis is to establish what will happen to the financial results if a specified level of activity
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Through our study of Salem Telephone Company (STC)‚ we’re going to analyze whether or not Salem Data Services (SDS) will be a profitable business to keep. We will do so by utilizing break even analysis. Before we can find our solution‚ we should discuss Salem Data Services’ (SDS) accounting report step by step. To begin‚ the various costs incurred to SDS should be grouped into either variable‚ or fixed. The only variable costs that have any relation to the total revenue hours listed from exhibit
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