Acme Company produces and sells a single product. During the…
Acme Company produces and sells a single product. During the most recent year, Acme reports sales revenue of $240,000 (16,000 units), total fixed costs of $64,000, and a break-even point in terms of sales revenue of $192,000. Due to changes in the marketplace, Acme expects that its per-unit variable costs will decrease by 20% and its per-unit selling price will decrease by $2.00 per unit. What is Acme’s new break-even point in terms of sales revenue?
Read DetailsOdin Sorensen, the owner of Sweet Tooth Baked Goods, receive…
Odin Sorensen, the owner of Sweet Tooth Baked Goods, received the following information: a. The All Commodity Volume (ACV) and Product Category Volume (PCV) for Sweet Tooth’s distribution channel are 85% and 89%, respectively. Odin would like to know what the ACV and the PCV measure or how they relate. Briefly explain to Odin what these measures tell him about Sweet Tooth Baked Goods and its distribution channel. (10 points) b. The following metrics are averages for the stores in which Sweet Tooth Baked Goods are placed for the weekend leading into St. Valentine’s Day 2024, February 9 (Friday) to February 14 (Wednesday): TPC = 91%; TPH = 83.2; Ta = $28.48; Savg = 10.4 Please explain to Odin what these four metrics mean and what they tell him about the stores where Sweet Tooth is sold (10 points)
Read DetailsAcme Company plans to produce and sell a new product for $14…
Acme Company plans to produce and sell a new product for $140 per unit. Acme has enough existing capacity to produce 4,800 units per year at a variable cost of $80 per unit and total fixed costs of $330,000 per year. If necessary, Acme can expand its capacity by renting additional space. The annual rent expense would be $32,000 and the variable cost of the units produced in the rented space would be $90 per unit. What is the total number of units that Acme needs to sell to break-even on the new product?
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