Question
4.- A company offers three different services; the basic, the standard and the deluxe. The prices of these three services are: $ 110, $ 320
4.- A company offers three different services; the basic, the standard and the deluxe. The prices of these three services are: $ 110, $ 320 and $ 660 respectively. The average variable cost of each service is $ 60, $ 210, and $ 490. This company plans to open a new branch and wants to determine the equilibrium sales level (cost / volume / profit). According to historical information, the% participation of each of the services is 50%, 35% and 15%. The investment cost of the new branch is $ 2,450,000.
a) Determine the equilibrium sales value (breakeven point)
b) How much should you sell of each service?
c) Given the crisis, a 50% decrease in sales of the luxury service is being anticipated. How much more of the other services will it have to sell to achieve the breakeven point? Determine three scenarios.
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