The writer is very fast, professional and responded to the review request fast also. Thank you.
Book/movie review
22/08/2022
a) Compute the break even point in total sales, dollars, and in units for 2008.
(b) Terri has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased only $6.25 because of competitive pressures. Terri estimates that sales volumes will increase by 30%. What effect would Terri’s plan have on the profits and the break even point in dollars of the partner ship? (Round the contribution margin ratio to two decimal places.)
c) Jerry was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Terri’s. (1) Increase variable selling expenses to $0.79 per unit, (2) lower the selling price per unit by $0.30, and (3) increase fixed selling expenses by $35,000. Jerry quoted an old marketing research report that said that sales volumes would increase by 60% if these changes were made. What effect would Jerry’s plan have on the profits and the break-even point in dollars of the partnership?
d) Which plan should be accepted? Explain your answer in a 1 page double-spaced paper explaining the problem and the solution. Pretend that the person reading it knows absolutely nothing about accounting or finance.
e. (i) What is the margin of safety ratio?
(ii) What does this ratio mean to this business?
The writer is very fast, professional and responded to the review request fast also. Thank 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