Micro Fridge Case Study Analysis

In order to break even, the minimal quantity of cars to sell at the average retail price $102,500 (($109,000+$96,000)/2) for the first year is

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

Although the financial goal is to create profit, we need to calculate the breakeven point to get started.

Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

Breakeven = £1 million/£25 = 40,000 subscriptions Given you need 40,000 subscriptions to breakeven, do you move forward?

A firm choosing to charge a high price during the introductory stage will likely find which result? A

Based on the Excel Problem of chapter one, if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break even point of 725?

Break-even Dollar Volume = Total Fixed Costs / Contribution Margin = $525,000 / 0.7111 = $738,282.40

5. Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.

(b) How many units will Yabba have to sell next year in order for it to achieve the same profit that it did this year?

-What goals or objectives must be achieved by any potential solution to the problem? (eg. Must maximize market share)

a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?

(1.98 is also reasonable select. Since there is no brand image or loyal customer, it's not big problem to price very low as long as defend VC. Profit is only $4000, but as long as the business continues it's better than nothing.)

After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1