Review Find Replace Dictate Editing Voice Draw Design Layout References Mailings View Help - 12 - Aa A IEEE 2 et XA - 2-A- Normal 7 No Spec... Heading 1 Heading 2 Title Font Paragraph Styles Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target either profit levels or their ability to manage the elements of the profit calculation. For example, if CompuTech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: the sales price for each compuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? 02: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3: If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (21) represent? Comment on what the calculated BE means relative to the total market. Q4: of CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of Computesh, what would the impact be on the company's BE? Q5: If the Sheridan student could impact unit sales by 20% growth, would their hiring be Full nglish/canada Droo Search 40 Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target elther profit levels or their ability to manage the elements of the profit calculation. For example, if Computech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: 1) the sales price for each Computech product sold is $50; () each product sold costs $25 in Raw Material components, and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3: If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (Q1) represent? Comment on what the calculated BE means relative to the total market. Q4: If CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of CompuTech, what would the impact be on the company's BE? Review Find Replace Dictate Editing Voice Draw Design Layout References Mailings View Help - 12 - Aa A IEEE 2 et XA - 2-A- Normal 7 No Spec... Heading 1 Heading 2 Title Font Paragraph Styles Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target either profit levels or their ability to manage the elements of the profit calculation. For example, if CompuTech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: the sales price for each compuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? 02: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3: If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (21) represent? Comment on what the calculated BE means relative to the total market. Q4: of CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of Computesh, what would the impact be on the company's BE? Q5: If the Sheridan student could impact unit sales by 20% growth, would their hiring be Full nglish/canada Droo Search 40 Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target elther profit levels or their ability to manage the elements of the profit calculation. For example, if Computech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: 1) the sales price for each Computech product sold is $50; () each product sold costs $25 in Raw Material components, and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3: If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (Q1) represent? Comment on what the calculated BE means relative to the total market. Q4: If CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of CompuTech, what would the impact be on the company's BE