Question: 2. You are evaluating opening a small distribution facility that buys and distributes/sells medical supply products. You gathered the following information about the business potential:

2. You are evaluating opening a small
2. You are evaluating opening a small
2. You are evaluating opening a small distribution facility that buys and distributes/sells medical supply products. You gathered the following information about the business potential: (up to 8 points for this problem) Warehouse expenses are $10,000 per month. Lease is for one year, and renewable if you choose to do so. Utilities/taxes are $1500 per month. Payroll: 2 sales people that are each paid $50,000 per year and each earn a 5% commission on sales. Both sales persons work from their home and use their own computer and resources. Office/Warehouse personnel - There are two individuals that both earn $30 per hour, which includes all payroll taxes. Each person gets two weeks of PTO/vacation. You do not anticipate any overtime to meet current demand. Each employee will work 40 hours/week. You will work full-time in this business and you plan to earn $150,000 net profit by the end of the first year. You do not intend to take any salary during the year. Based upon your research, the gross margin of the product that you will distribute/sell is 42%. And on average, each product sells for $18/unit. Questions: A. On an annual basis, What are the break-even points in dollars and units? B. How many sales dollar and units are needed to make $150,000 in annual net profit? statement "It ha me" can go ei kers to actuall statement ca onal agree an short period something to 9. A consulting company has decided to undertake an organizational development program in order to improve organizational performance. The top management at the consultancy has collected data through survey questionnaires. Which of the following should be the next step of the OD effort? A) Evaluation B) Education c) Change planning D) Intervention E) Initiation 10. refers to an organizationwide. planned effort managed from the top, with a goal of increasing performance through planned interventions. A) Organizational climate B) Organizational culture c) Organizational socialization D) Organizational structure E) Organizational development Short Answer Questions: 1. Assume the following scenario: (up to 7 points for this problem) Variable costs are 25% of sales. Budgeted sales for the upcoming year are expected to be $1,000,000 and 10,000 units. Fixed costs are $500,000 A. What are the break-even points in dollars and units? B. What is the gross profit margin if budgeted sales is attained? C. What is the net profit if $900,000 in sales is achieved

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