Lavendell, an herbal exfoliating soap, is projected to have sales of 6,000 units next year equivalent...
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Lavendell, an herbal exfoliating soap, is projected to have sales of 6,000 units next year equivalent to $2,400,000. Its variable cost to produce and market is $300 per unit while fixed cost is $34,000 per month. Answer the following questions, consider each independently. a. What is the projected breakeven per year? (Round up to nearest whole number) (5 pts) b. How much should the sales be to earn a profit of $50,000 per month? (Round up to nearest two decimal places) c. If the selling price per unit declines by 10%, what is the breakeven point in sales? (Round up to nearest two decimal places) Lavendell, an herbal exfoliating soap, is projected to have sales of 6,000 units next year equivalent to $2,400,000. Its variable cost to produce and market is $300 per unit while fixed cost is $34,000 per month. Answer the following questions, consider each independently. a. What is the projected breakeven per year? (Round up to nearest whole number) (5 pts) b. How much should the sales be to earn a profit of $50,000 per month? (Round up to nearest two decimal places) c. If the selling price per unit declines by 10%, what is the breakeven point in sales? (Round up to nearest two decimal places)
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To calculate the breakeven point we need to determine the level of sales at which the companys total ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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