The Mayaro Company, a manufacturer of plastic bowls, has experienced tremendous growth over the last year. This has led to the emergence of multiple competitors. Mr. Khan the CEO of the Mayaro company, believes that a massive marketing campaign is required to maintain the company’s growth in the year 2017. To prepare for the campaign the company’s cost accountant has provided the following information to Mr. Khan.
Variable Cost per bowl:
Direct labour $ 8.00
Direct Materials $3.25
Variable production costs $ 2.50
Fixed costs:
Manufacturing $25,000
Marketing $ 20,000
Distribution and customer service $ 20,000
Administrative $ 70,000
Estimated Selling price per bowl for 2017 $ 25.00
Budgeted sales volume (2017) 20,000 bowls
Required:
What is the projected profit for 2017?
What is the breakeven point in units for 2017?
What will be the new projected profit, if the budget sales volume is changed to 22,000 bowls and there is an additional marketing cost of $ 11,250? For this scenario, what will be the breakeven in units and in revenues?
At a sales volume of 22,000 bowls, what is the maximum amount that should be spent on marketing to ensure a profit of $ 60,000?
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more