2. Marvel's Office Supply plans to make and sell high-end staplers. They have 3 optional packages...

Transcribed Image Text:

2. Marvel's Office Supply plans to make and sell high-end staplers. They have 3 optional packages that they believe will be big sellers but they want to choose the best option based on their capacity and the selling price range that they need to be in to continue to be competitive. The following are the options that they want to analyze: Option 1...This stapler has a metal frame, a rubber grip bottom held on with screws, and a comfort grip top made of soft plastic. Other associated costs are listed below: Selling Price $ 18.99 each Metal Frame $ 8.00 each Rubber Bottom $ 1.12 each Screws $ 2.03 each Plastic Handle $ 1.70 each Option 2...This stapler has a metal frame, a rubber grip bottom held on with rivets, and a foam grip for the top. Other associated costs are listed below: Selling Price $ 16.25 each Metal Frame $ 8.00 each Rubber Bottom $ 1.12 each Rivets $ 0.25 each Foam Handle $ 0.50 each Option 3...This stapler has a plastic frame, a rubber grip bottom held on with rivets, and a comfort grip made of soft plastic. Other associated costs are listed below: Selling Price $ 14.50 each Plastic Frame $ 5.00 each Rubber Bottom $ 1.12 each Rivets $ 0.25 each Plastic Handle $ 1.70 each Additional Information: Production Salaries: $ 56,000 Inspections $ 0.50 each Sales Salaries: $ 62,000 Packaging: $ 1.80 each Sales Commissions $ 2.75 each 3. If the company decides to sell only option 3, and the desired profit is 13,500 how many do they need to sell? $ 4. If the company decides to sell only option 1 and can reduce the fixed costs by 10%, how many hats to they need to sell to break even? 5. If the company decides to sell only option 2 but must increase the sales commissions break even? on each to $ 3.00, how many hats do they need to sell to 6. If the company decides to sell only option 3 but their maximum capacity is break even? 50,000 hats, how much should they sell their hats for to 7. Based on 6 above, how much do they need to sell the hats for it they have a desired profit level of $50,600 ? 2. Marvel's Office Supply plans to make and sell high-end staplers. They have 3 optional packages that they believe will be big sellers but they want to choose the best option based on their capacity and the selling price range that they need to be in to continue to be competitive. The following are the options that they want to analyze: Option 1...This stapler has a metal frame, a rubber grip bottom held on with screws, and a comfort grip top made of soft plastic. Other associated costs are listed below: Selling Price $ 18.99 each Metal Frame $ 8.00 each Rubber Bottom $ 1.12 each Screws $ 2.03 each Plastic Handle $ 1.70 each Option 2...This stapler has a metal frame, a rubber grip bottom held on with rivets, and a foam grip for the top. Other associated costs are listed below: Selling Price $ 16.25 each Metal Frame $ 8.00 each Rubber Bottom $ 1.12 each Rivets $ 0.25 each Foam Handle $ 0.50 each Option 3...This stapler has a plastic frame, a rubber grip bottom held on with rivets, and a comfort grip made of soft plastic. Other associated costs are listed below: Selling Price $ 14.50 each Plastic Frame $ 5.00 each Rubber Bottom $ 1.12 each Rivets $ 0.25 each Plastic Handle $ 1.70 each Additional Information: Production Salaries: $ 56,000 Inspections $ 0.50 each Sales Salaries: $ 62,000 Packaging: $ 1.80 each Sales Commissions $ 2.75 each 3. If the company decides to sell only option 3, and the desired profit is 13,500 how many do they need to sell? $ 4. If the company decides to sell only option 1 and can reduce the fixed costs by 10%, how many hats to they need to sell to break even? 5. If the company decides to sell only option 2 but must increase the sales commissions break even? on each to $ 3.00, how many hats do they need to sell to 6. If the company decides to sell only option 3 but their maximum capacity is break even? 50,000 hats, how much should they sell their hats for to 7. Based on 6 above, how much do they need to sell the hats for it they have a desired profit level of $50,600 ?