Question: Cas All applicable Cases are available in Connect. e CVP application-allow special discount? Assume you are a sales representative for 12.3 Sweet Tooth Candy Company.
Cas All applicable Cases are available in Connect. e CVP application-allow special discount? Assume you are a sales representative for 12.3 Sweet Tooth Candy Company. One of your customers is interested in buying some 1 candy that will be given to the members of a high school Student Government LO Association. The association members will be marching in a community parade and will give the candy to children who are watching the parade. Your customer has asked that 12-8, you discount the normal selling price of the candy to be given to the club by 30%. You 12-9, know that the contribution margin ratio of the candy, based on the regular selling price, is 12-11 40% Required: Identify the pros and cons of complying with the customer's request, and state the recommendation you would make to your sales manager. Cas CVP application-determine offering price Tommy Appleton is in charge of arranging the "social hour" period and dinner for the monthly meetings of the local chapter of the Management Accountants Association. Tommy is negotiating with a new restaurant that 12.3 would like to have the group's business, and Tommy wants to apply some of the cost2 volume-profit analysis concepts he has learned. The restaurant is proposing its regular LO menu prices of $8 for a before-dinner hors d'oeuvre and $22 for dinner. Tommy has 12-5, determined that, on average, the people attending the meeting have 1.5 hors d'oeuvres 12-8, before dinner. He also believes that the contribution margin ratios for the hors d'oeuvres 12-9 and dinner are 50% and 40%, respectively. Required: Prepare a memo to Tommy outlining the possible offers he might make to the restaurant owner, and recommend which offer he should make
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
