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Breakerren analysis Molly Jasper and her sister. Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little gurines

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Breakerren analysis Molly Jasper and her sister. Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little gurines as gifts for friends. Occasionally, she and Caitlin would set up a booth at a crafts fair and sell a few of the gurines along with jewelry that Caitlin made. Little by little, demand for the gurinesI now called Mollycaits, grew, and the sisters began to reproduce some of the favorites in resinI using molds of the originals. The day came when a buyer for a major department store offered them a contract to produce 1,460 gurines of various designs for $10,250. Molly and Caitlin realized that it was time to getdown to business. To make bookkeeping simpler. Molly had priced all of the gurines at $3.42. Variable operating msts amounted to an average of $6 .32 per unit. To produce the ord er, Molly and Caitlin would have to rent industrial facilities for a month, which would cost them $4,500. a. Calculate Mollycaitsr operating breakeven point. b. Calculate Molly-lits' EBIT on the department store order. 1:. If Molly renegotiates the contract at a price of $9.83 per gurineI what will the EBIT be? d. If the store refuses to pay more than $3.42 per unit but is willing to negotiate quantity, what quantity of gurines will result in an EBIT of $4,400? a. At this time. Mollycaits come in 15 different varieties Whereas the average variable cost per unit is $6.32. the actual cost varies from unit to unit. What recommendation would you have for Molly and Caitlin with regard to pricing andior the numbers and types of units that they oer for sale

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