Answer a:
Answer b:
Answer c:
Contribution margin ratio = Contribution margin / Sales = $5,000,000 / $25,000,000 = 20%
Break-even in dollar sales = Fixed Costs /Contribution margin ratio = $4,200,000 / 20% = $21,000,000
Break-even in dollar sales = $21,000,000
2. The annual planning process at Century Office Systems, Inc. had been arduous but produced a...
9. The annual planning at Century Office Systems, Inc. had been arduous but produced a number of important marketing initiatives for the next year. Most notably, company executives had decided to restructure its product-marketing team into two separate groups: (1) Corporate Office System and (2) Home Office System. Angela Blake was assigned responsibility for the Home Office Systems group, which would market the company’s word-processing hardware and software for home and office-at-home use by individuals. Her marketing plan, which included...
Styles Text Box 3. The annual planning process at Century Office Systema, Inc. had been arduous but produced a sumber of important marketing initiatives for the next year. Most notably, coepany executives had decided to restructure its product-marketing team inte twe separate groups: (1) Corporate Office Systems and (2) Home Office Systems. Angela Blake (Marketing Director) was assigned responsibility for the Home Office Systems group, which would market the company's word- processing hardware and software for home and office-at-home use...
Question 4 The marketing plan at E-Tech Systems is based on a corporate restructure which divides the company into two separate groups: (1) Commercial Systems and (2) Personal Systems. Samantha Smith was assigned responsibility for the Personal Systems group. The marketing plan, which included a sales forecast next year of $100 million, was the result of a detailed market analysis. Sales representatives would receive a 20 percent commission on sales of personal systems. Under the new organizational structure, the Personal...
The marketing plan at E-Tech Systems is based on a corporate restructure which divides the company into two separate groups: (1) Commercial Systems and (2) Personal Systems. Samantha Smith was assigned responsibility for the Personal Systems group. The marketing plan, which included a sales forecast next year of $100 million, was the result of a detailed market analysis. Sales representatives would receive a 20 percent commission on sales of personal systems. Under the new organizational structure, the Personal Systems group...
WU WILL The HBM Company has two divisions Corporate Office Systems and Home Office Systems. David Smith was building the budget for Home Office Systems. The forecast included next year's sales of $25,000,000. There was a common sales team for both divisions. 40% of the sales team would be dedicated to Home Office Systems. Sales reps for Home Office would earn a 15% commission (fee for service) on sales of Home Office Systems. Home Office Systems would be charged for...
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Karges Coffee Inc. manufactures a line of single-cup brewing machines for home and office use that brew a cup of coffee, tea, or hot chocolate in less than a minute. The machines use specially packaged portions of coffee, tea, or hot chocolate that can be purchased online directly from Karges or at specialty coffee shops licensed to distribute the company’s products. The appeal of the brewing machines is twofold. First, they offer a high level of convenience. The use of...
Karges Coffee Inc. manufactures a line of single-cup brewing machines for home and office use that brew a cup of coffee, tea, or hot chocolate in less than a minute. The machines use specially packaged portions of coffee, tea, or hot chocolate that can be purchased online directly from Karges or at specialty coffee shops licensed to distribute the company's products. The appeal of the brewing machines is twofold. First, they offer a high level of convenience. The use of...
Scholes Systems supplies a particular type of office chair to large retailers such as Target, Costco, and Office Max. Scholes is concerned about the possible effects of inflation on its operations. Presently, the company sells 82,000 units for $70 per unit. The variable production costs are $40, and fixed costs amount to $1,420,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 5 percent in the...
Scholes Systems supplies a particular type of office chair to large retailers such as Target, Costco, and Office Max. Scholes is concerned about the possible effects of inflation on its operations. Presently, the company sells 83,000 units for $60 per unit. The variable production costs are $30, and fixed costs amount to $1,430,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 10 percent in the...