Question
Carefully observe the following information, and provide your attempts--computation processes and answers--to each problem separately. Cost structure and product price of Chico garden tool company
Carefully observe the following information, and provide your attempts--computation processes and answers--to each problem separately. Cost structure and product price of Chico garden tool company Investment $90,000 Other fixed overhead $30,000 R&D $80,000 Labor $3 per garden tool (unit) Traditional media advertising $60,000 Materials $2 per garden tool (unit) Social media marketing $50,000 Discount coupon $1 per garden tool (unit) Factory facility rental $40,000 Selling price $14 per garden tool (unit).
1.1) What is Unit contribution ($ per unit) of Chico garden tool companys garden tool?
1.2) Break-even volume of its garden tool?
1.3) Dollar break-even of its garden tool?
1.4) How many garden tools to sell to achieve a profit target of $50,000?
1.5) When discount coupon cost is increased to $2 per garden tool (unit), new break-even volume of garden tool with this $2 coupon (when other costs stay unchanged)?
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