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1) You are a manager for Dan's Juice Barna small distributor with 3 juice lines. You have three juices--Apple, Orange, and Pear, with the following
1) You are a manager for Dan's Juice Barna small distributor with 3 juice lines. You have three juices--Apple, Orange, and Pear, with the following information: Price Unit Cost Last year Demand Apple $2.50 per liter $1.00 per liter 50,000 liters Orange $2.00 per liter $1.00 per liter 250,000 liters Pear $3.00 per liter $2.25 per liter 25,000 liters You have 3 salespeople who are paid $30,000 per year plus 10% commission on sales. You also spend an average of 5% of your total sales per year for promotion (advertising, etc.). Your other fixed costs are $15,000 per month. Answer the following questions: do What is the contribution margin and markup for each type of juice? What was the profit/loss for last year for the company? If each of your salespeople were assigned to just one juice type (one for Apple, one for Orange and one for Pear), how much would each salesperson have to sell to cover their own fixed expenses (ignoring the other fixed expenses)? How many total liters of juice would you have to sell to break-even given you expect similar ordering this year? Note: this is not a question about break even for each juiceit is a question about the total liters for all juices combined
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