A firm currently sells 1200 units of sardines in a month. As part of their new product line campaign, they are planning to offer a 15% discount on all their items. Contribution Margin is 60% per can. Based on the given facts:

• What will be the percentage of volume hurdle?
• How much would they need to sell to break even?
• At what volume point would they start earning upon launching the discount?
• This is a sample of a  Volume hurdle problem.

Imat is taking an aggressive approach on pricing their digital agency services. From a current average of 50 projects in a month where each of which have a contribution margin of 60%. They intend to increase their service prices by 20%, as agreed upon by the Partners of the business.

• Determine the type of volume hurdle.
• Determine the percentage of volume hurdle?
• Determine the number of projects they would need to close to break-even.

Answer rating: 100% (QA)

1 Old Commission Structure a To break even Total Fixed Costs Rs 140000 Contribution per Ticket Ticket Price Variable Cost Rs 9000 Rs 200 Rs 8800 Break... View the full answer