List the variable costs per pair of shoes. Make sure to identify and clearly breakout all variable
Question:
List the variable costs per pair of shoes. Make sure to identify and clearly breakout all variable costs on a per pair basis.
What is the total overhead per year that Cushion Clogs is currently incurring? Based on the case information, is overhead likely to be predominantly fixed or variable? What evidence is there to support your answer?
Using your responses to a & b above, how many pairs of shoes would need to be sold to breakeven in the first year under the following scenario:
i The low end of the Bay's desired selling price range
Consider the estimated demand figures for first year sales provided by the Bay. How much profit would Cushion Clogs make under the pricing option in part c
What qualitative factors should be considered in the decision to sell to the Bay?
Please limit your response memo to no more than two pages single spaced, point font You may wish to include an excel document supporting your calculations and analysis. The final memo should include the names of all group members and should be uploaded to the Moodle assignment dropbox by one member of your group.
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer