Assume that you are operating a furniture store and the owners have asked you to:

Identify and describe two relevant value-added activities. 

Identify a non-value-added activity and describe why this activity is a non-value-added activity. Note - to answer this question you will have to use your imagination and your understanding of the difference between value added activities and non-value-added activities.

 You are selling a product for $799 per unit, have variable manufacturing costs of $488 per unit, variable selling expense of $157 per unit, fixed manufacturing costs of $250,000, fixed selling expense of $75,000, and fixed administrative costs of $100,000.

How many units must you sell to break-even (round to the next higher whole unit)?

How many units must you sell to earn a pretax profit of $350,000 (round to the next higher whole unit)?

Answer rating: 100% (QA)

Relevant ValueAdded Activities 1 Customization Services Offering customization options to customers such as choosing fabric colors materials or design ... View the full answer