Lorenzo shares the following information with you as you ponder different scenarios to help your client.

Selling price $$7\mathrm{.}50$

Cost for paper, per unit $$0\mathrm{.}70$

Cost for printing, per unit $$1\mathrm{.}10$

Cost for film, per unit $$0\mathrm{.}60$

Staff salaries $$48,000\mathrm{.}00$

Other operating costs $$12,120\mathrm{.}00$

Using Lorenzo$$s data and proper Excel formulas, first, plan to get an understanding of Lorenzo$$s financial situation based on breakeven.

$1.$Use a more affordable paper on which to print the posters $($available for $$0\mathrm{.}60$ per unit$),$ in combination with a less$-$expensive film to coat the surface of the poster $($available for $$0\mathrm{.}40$ per unit$).$

$2.$ Instead of paying the salespeople a fixed salary, move to a commission$-$based compensation plan $($save $$20,000$ in salary; incur $$1\mathrm{.}50$ per unit sold commission$),$ which should increase sales volume by $20\%.$

Answer rating: 100% (QA)

To analyze Lorenzos financial situation based on breakeven using the provided data we can consider t... View the full answer