The annual usage and cost details of World Cup Soccer balls follows, at annual quantity of...

             

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The annual usage and cost details of World Cup Soccer balls follows, at annual quantity of 200 units. Leather 50 metres @ $22 per metre Rubber bladders, 200 @ $6 per bladder Valves 200 @ 50 cents per valve. Lace 100 metres @ 20 cents per metre Labour 600 hrs @ $15 per hour. World Cup operates from a small factory for which it pays rent and associated costs of $20,000, per annum i) What sale price per football would allow World Cup to break even over the year at this level of operations? ii) Due to competetion from Euro Football, World Cup has determined on a selling price of $200 per football. Owner desired a profit of $8000 for the year. How many footballs will World Cup need to sell in order to achieve the target The annual usage and cost details of World Cup Soccer balls follows, at annual quantity of 200 units. Leather 50 metres @ $22 per metre Rubber bladders, 200 @ $6 per bladder Valves 200 @ 50 cents per valve. Lace 100 metres @ 20 cents per metre Labour 600 hrs @ $15 per hour. World Cup operates from a small factory for which it pays rent and associated costs of $20,000, per annum i) What sale price per football would allow World Cup to break even over the year at this level of operations? ii) Due to competetion from Euro Football, World Cup has determined on a selling price of $200 per football. Owner desired a profit of $8000 for the year. How many footballs will World Cup need to sell in order to achieve the target

Answer rating: 100% (QA)

i To calculate the breakeven sale price per football we need to add up all the costs and expenses an... View the full answer