Table 1: Pepita Disco Performance, 2011 (UYU in millions) Units sold 100 million units Revenue 200...

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Question

Table 1: Pepita Disco Performance, 2011 (UYU in millions) Units sold 100 million units Revenue 200...

Table 1: Pepita Disco Performance, 2011 (UYU in millions)

Units sold	100 million units
Revenue	200
Variable costs
Materials	30
Direct labor(manufacturing,sales)	40
Opearational costs(manufacturing,inventory,delivery)	30
Other variable costs	20
Margin on Sales	80
Fixed Costs
Marketing and advertising	10
Research and development	10
Other fixed costs(e.g head office)	40
Net margin	20

a.) Reduce research and development 10% and, as a result, unit sales decreased 5%?

b. Reduce marketing and advertising 10% and, as a result, unit sales decreased 5%?

business accounting

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Answer 1

Answer #1

Pepita Disco Performance, 2011 (UYU in millions)		A.	B.
Units sold	100 million units	95	95
Per unit price	2	2	2
Revenue	200	190	190
Variable costs
Materials	30	30	30
Direct labor(manufacturing,sales)	40	40	40
Operational costs(manufacturing,inventory,delivery)	30	30	30
Other variable costs	20	20	20
Margin on Sales	80	70	70
Fixed Costs
Marketing and advertising	10	10	9
Research and development	10	9	10
Other fixed costs(e.g head office)	40	40	40
Net margin	20	11	11

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Answer 2

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