Utilities $1,000
Rent $8,000
asistant Salary $5,000
managers salary $6000
Fixed cost =20,000
coco butter per box of chocolate $2
milk per $o.40
sugar per $1.60
secret ingredient $3
+Wages of the employee $3
= variable cost is 10
selling price is = $20
Given, Fixed cost = $20,000
Pricing per unit = $20
Variable cost per unit = $10
a)
Break even quantity = Fixed cost/(pricing per unit – variable cost per unit)
Break even quantity = 20,000/(20-10)
Break even quantity =2000
b)
value in dollars = Fixed cost + total variable cost = total pricing
value in dollars = 20000+(10*2000)=20*2000= 40000
c)
suppose, there is monthly demand of 20000 and breakeven point or quantity 2000, hence market share would be 2000/20000 = 10%, that can be achievable
Utilities $1,000 Rent $8,000 asistant Salary $5,000 managers salary $6000 Fixed cost =20,000 coco butter per...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). P & L Statement Revenue 750,000 (100 x 7500) Variable Costs -187,500 (25 x 2500) Contribution 562,500 Fixed Costs -500,000 Net income/profit 62,500 b. What is...
Trader Joe's Keeps Things Fresh CASE 1A Trader Joe’s Keeps Things Fresh The average Trader Joe’s stocks only a small percentage of the products of local supermarkets in a space little larger than a corner store. How did this neighborhood market grow to earnings of $9 billion, garner superior ratings, and become a model of management? Take a walk down the aisles of Trader Joe’s and learn how sharp attention to the fundamentals of retail management made this chain more...