a. If the average selling price is £21, calculate the breakeven point in quantity and money terms and draw a rough sketch of a cost-volume-profit (CVP) graph that shows the relationships between the elements of CVP.
b. Ignoring any market demand or capacity limitations, calculate the optimum selling price for Greentown Industries and identify which customer group is most profitable
c. Based on the calculation of optimum selling prices in (b) above but with the capacity and demand assumptions taken into consideration, calculate the maximum profits that Greentown can earn and the customer mix and quantity by which that profit can be achieved.

  • CreatedSeptember 15, 2015
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