Q3. Delicious House sells eftali Kebap. In a year (A year has to be considered as...
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Q3. Delicious House sells eftali Kebap. In a year (A year has to be considered as 360 days), we sell 18,000 kebaps to our customers. The additional data can be given as follows: Fixed Cost per year: $1,200,000 Variable Cost per year: $450,000 Selling price per unit: $35 Required: a) How many days do we need to reach Break Even Point? (10p) b) You believe that if we decrease the selling price of the product (kebap) by 20%, the demand will increase to 20,000 units (kebap) in a year (in 360 days). Accordingly, How many days do we need to reach Break Even Point when we decrease the selling price (by 20%)? (10p) c) Please discuss whether decreasing the selling price will help managers or not (What is your suggestion; shall we decrease the selling price in this case)? (5p) d) The owner of the Delicious House wants to learn minimum selling price to gain competitive advantage. What can be min. selling price of a kebap? (10p) Q4. Assume that ABC Company produces two types of tables. The data related to the tables (Table X and Table Y) is given as follows: X Y Sales Quantity (in units) Sales revenue ($) in total 150,000 50,000 750,000 300,000 450,000 100,000 Variable cost ($) in total Total fixed cost: $400,000 Required: Calculate the break-even points in $ for Product X and Product Y, separately (15p). Q3. Delicious House sells eftali Kebap. In a year (A year has to be considered as 360 days), we sell 18,000 kebaps to our customers. The additional data can be given as follows: Fixed Cost per year: $1,200,000 Variable Cost per year: $450,000 Selling price per unit: $35 Required: a) How many days do we need to reach Break Even Point? (10p) b) You believe that if we decrease the selling price of the product (kebap) by 20%, the demand will increase to 20,000 units (kebap) in a year (in 360 days). Accordingly, How many days do we need to reach Break Even Point when we decrease the selling price (by 20%)? (10p) c) Please discuss whether decreasing the selling price will help managers or not (What is your suggestion; shall we decrease the selling price in this case)? (5p) d) The owner of the Delicious House wants to learn minimum selling price to gain competitive advantage. What can be min. selling price of a kebap? (10p) Q4. Assume that ABC Company produces two types of tables. The data related to the tables (Table X and Table Y) is given as follows: X Y Sales Quantity (in units) Sales revenue ($) in total 150,000 50,000 750,000 300,000 450,000 100,000 Variable cost ($) in total Total fixed cost: $400,000 Required: Calculate the break-even points in $ for Product X and Product Y, separately (15p).
Expert Answer:
Answer rating: 100% (QA)
Lets tackle these questions step by step a To find the Break Even Point BEP we use the formula BEP FixedCostSellingPriceperunit VariableCostperunit Su... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
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