You are analyzing three competing jewelry companies. The three businesses have the identical cost structures and selling
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Question:
You are analyzing three competing jewelry companies. The three businesses have the identical cost structures and selling prices. Fix costs are $250,000, variable cost is $2 per unit, and selling price is $10 per unit.
a) What is your profit per unit and profit margin if co #1 produces 50,000 units, Co#2 produces 100,000 units, and Co#3 produces 150,000 units.
b) Which company is more profitable? Why?
c) If each company sells 45,000 units, what is the change in inventory on the Balance sheet.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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