The garden supply company is introducing various aged trees to their product range in 2021. They have
Question:
Calculate the contribution margin, sales mix and weighted average cost margin for each product. (6 marks)
Calculate the break-even point in total units and units per product based on the data. (4 marks)
Management is now considering increasing the price of 1 year old trees to $17 with an expected drop in volume to 15,000 trees while lowering the price of 3 year old trees to $35 with an expected increase in volume to 20,000 trees. There would be no change to the price and sales volume of 2 year old trees. Implementing this initiative would increase annual fixed costs by $10 000. On the available data, would you recommend the initiative?
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton