Orion Languages, Incorporated (OLI) offers conversational instruction in several languages. Customers can choose from three approaches:...
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Orion Languages, Incorporated (OLI) offers conversational instruction in several languages. Customers can choose from three approaches: Group, Individual, or Intense. Group customers meet as a part of a class at scheduled times. Individual customers receive one-on-one instruction over the same time frame as a group class, but at times most convenient for them, Intense customers receive focused, individual instruction over two weeks; this approach is often chosen by executives who are relocating to offices located in countries where a new (to the executive) language is spoken. The courses have the following characteristics: Price charged per customer Variable cost per customer Group $ 300 $ 50 Individual $ 2,500 Intense $ 5,000 $ 1,500 600 200 $ 3,250 200 Expected customers per year The total fixed costs per year for the company are $490,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point in number of customers. c. As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intense offering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same total number of customers, but the mix will change to about 5 Group, 4 Individual, and 1 Intense customer for every 10 customers that sign up for a course. Assuming that this revised product mix is the same at the break-even point, compute the break-even point in number of customers under these new expectations. Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit < Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming that the product mix is the same at the break-even point, compute the break-even point in number of customers. Break-even point customers < Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intense offering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same total number of customers, but the mix will change to about 5 Group, 4 Individual, and 1 Intense customer for every 10 customers that sign up for a course. Assuming that this revised product mix is the same at the break-even point, compute the break-even point in number of customers under these new expectations. Break-even point customers < Required B Required C > Show less Orion Languages, Incorporated (OLI) offers conversational instruction in several languages. Customers can choose from three approaches: Group, Individual, or Intense. Group customers meet as a part of a class at scheduled times. Individual customers receive one-on-one instruction over the same time frame as a group class, but at times most convenient for them, Intense customers receive focused, individual instruction over two weeks; this approach is often chosen by executives who are relocating to offices located in countries where a new (to the executive) language is spoken. The courses have the following characteristics: Price charged per customer Variable cost per customer Group $ 300 $ 50 Individual $ 2,500 Intense $ 5,000 $ 1,500 600 200 $ 3,250 200 Expected customers per year The total fixed costs per year for the company are $490,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point in number of customers. c. As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intense offering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same total number of customers, but the mix will change to about 5 Group, 4 Individual, and 1 Intense customer for every 10 customers that sign up for a course. Assuming that this revised product mix is the same at the break-even point, compute the break-even point in number of customers under these new expectations. Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit < Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming that the product mix is the same at the break-even point, compute the break-even point in number of customers. Break-even point customers < Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intense offering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same total number of customers, but the mix will change to about 5 Group, 4 Individual, and 1 Intense customer for every 10 customers that sign up for a course. Assuming that this revised product mix is the same at the break-even point, compute the break-even point in number of customers under these new expectations. Break-even point customers < Required B Required C > Show less
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Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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