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COMPANY QUALIFICATIONS: EasyFind manufactures and offers golf balls. The business is executing a price evaluation to find a better price point. At this time their baseballs sell for $19 per dozen. Their current volume is 5, 470 dozen per month. They are looking at reducing their particular sales selling price by twenty percent per dozen. QUESTION 1: What are EasyFind's total current revenues each month? $19 5. 5, 470 = $103, 930 [+/- $3, 118]

Total Revenues = Price * Volume

PROBLEM 2: In the event EasyFind's varying costs are $10 every dozen, precisely what is their total contribution monthly at current prices? ($19 - 10) * 5, 470 sama dengan $49, 230 [+/- $1, 477]

Total contribution = Product Contribution 2. units distributed

QUESTION 3: What will become EasyFind's fresh price in the event that they decide to implement the retail price decrease? $19 * (1 - 20%) = $15. 20 [+/- $0. 46]

Fresh Price = Old Selling price * (1 - Value Reduction %)

or Fresh Price sama dengan Old Cost - Outdated Price 5. Price Reduction%

QUESTION four: If EasyFind's variable costs are $12 per dozen, what is the contribution every dozen golf balls at the new price point? $15. 20 - 10 sama dengan $5. twenty [+/- $0. 16]

New contribution per dozen balls sama dengan New cost - Varying Costs QUERY 5: If perhaps EasyFind selects to reduce the selling price to the new price point, how many units might they have to promote to generate similar monthly revenue? $103, 930 / $15. 20 sama dengan 6, 838 [+/- 205]

New Units Important to sell sama dengan Old total revenues as well as New Price QUESTION 6th: If adjustable costs are $10 every dozen, precisely what is the new volume required to generate the same total contribution while before the price decrease? $49, 230 / $5. twenty = being unfaithful, 467 [+/- 284]

Divide unique total contribution by the new unit contribution QUESTION six: What % increase in device sales is necessary to achieve the same level of total contribution? 9, 467 / 5, 470 - you = 0. 73 [+/- 0. 02] (73%) [+/- 2%]

Increase = New Amount Required as well as Original amount – you

COMPANY HISTORY: A jacket potato seller charges $5. 72 every spud distributed. The varying cost of every single potato offered is $0. 91. The stall has a fixed expense of $500 a week. QUESTION 1: How various potatoes need to the not work sell in order to achieve a revenue objective of $750 weekly? (($500 & 750) / ($5. 72 - $0. 91)) sama dengan 260 [+/- 8]

Target Amount (units) = (Fixed Cost + Income Objective) / (Selling Cost - Variable Cost). QUESTION 2: A potato lack results in an increased variable cost per taters of bucks. 40, nevertheless selling prices remained unchanged. How many further potatoes does the vendor need to sell to still accomplish the profit goal of $750 per week? ($500 + 750) / ($5. 72 -- ($0. 91 +. 40)) - 260 = twenty-three [+/- 1]

Concentrate on Volume (units) = (Fixed Cost + Profit Objective) / (Selling Price -- Variable Cost) - first # potatoes needed to reach objective coming from previous question QUESTION a few: After the lack, prices go back to previous levels and the owner decide to lower prices to $3. 00 every potato. How many potatoes have to be purcahased by realize the prospective profit objective of $750? (750 & $500) as well as (3 -- $0. 91) = 598 [+/- 18]

Separate the sum of revenue and fixed expense by the new contribution perimeter per spud. QUESTION some: What percentage increase in amount sold does the answer in Q3 stand for? (598 - 260) as well as 260 sama dengan 1 . 31 [+/- 0. 04] (130%) [+/- 4%]

Embrace target quantity with fresh price divided by original target quantity. QUESTION your five: What is the percentage decrease in unit contribution caused by the drop in price to $3. 00? (($5. seventy two - $0. 91) - (3 -- $0. 91)) / ($5. 72 -- $0. 91) = zero. 57 [+/- 0. 02] (57%) [+/- 2%] Take the difference between original contribution and the fresh contribution and divide by original contribution. or Separate the new contribution by the older contribution and subtract from 1

ORGANIZATION BACKGROUND: Kai sells a tiny magazine full of celebrity gossip to college students for $2. 21 per copy. Hiring the producing press for one day, the only fixed cost, is $372 an issue. The variable cost of printing every issue is definitely $0. 83 per duplicate. The computer printer tells Kai the cost of selecting the press is to boost by $135 per day. PROBLEM 1:...

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