Jasmine Parks encountered her boss , Bobby Gompers, at the pop machine in the lobby. Bobby is the vice president of marketing at Down South Lures Corporation. Jasmine was puzzled by some calculations she had been doing, so she asked him; Jasmine: Bobby, Im not sure how to go about answering the questions that came up at the meeting with the president Yesterday Bobby: Whats the problem? Jasmine: The president wanted to know the break-even for each of the companys products, but I am having trouble figuring them out. Bobby: Im sure you can handle it, Jasmine . And , by the way , I need your analysis on my desk tomorrow morning at 8.00 sharp so I can look at it before the follow-up meeting at 9.00. Down South Lures makes three different fishing lures in its manufacturing facility in Alabama. Data concerning these products appear below Frog Minnow Worm Normal annual sales volume 100,000 200,000 300,000 Unit selling price $2.00 $1.40 $0.80 Variable cost per unit $1.20 $0.80 $0.50 Total fixed expenses are $282,000 per year All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers The company has no work in process or finished goods inventories due to an extremely effective Lean Production system Required What is the companys overall break-even point in total sales dollars? Of the total costs of $282,000, $18,000 could be avoided if the frog lure product were dropped, $96,000 if the Minnow lure product were dropped, and $60,000 if the Worn lure product were dropped. The remaining fixed costs of $108,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. What is the break-even point in unit for each product? If the company sells exactly the break-even quantity of each product, what will be the overall profits of the company? Explain this result. Do you want your assignment written by the best essay experts? Then look no further. Our team of experienced writers are on standby to deliver to you a quality written paper as per your specified instructions. Order Now, and enjoy an amazing discount!!
Focus Essays has been there for more than 10 years to offer students like you academic writing services.
Get our experience by placing an order with us and use the discount code PAPER15 to get 15% discount on all orders.
We deliver URGENT ORDERS within 6 hours. Get a quotation from the calculator below.
TRY OUR SERVICES TODAY.[order_calculator]