Case information Zoelle gave you the following income statements for the previous two months of activity: Table 1: Financial Income Statement Account February March Revenues 1500000 1125000 Cost of Goods Sold 790000 662500 Gross Margin 710000 462500 Period Cost - 210000 - 189500 Operating Income 500000 275000 I You can assume that the volumes of both months were on the same relevant range. The Chief Marketing Officer expects sales to decrease in April. She forecasted a total volume of 215.000 bags of N&Ns sold. The CEO of the company asked Noelle to make some projections for the next month of activity, April, and to help him make some decisions to achieve a target profit of 350.000,00 euros. Questions Question 1: Knowing that the price of a bag of N&Ns is 5.00 euros, build the profit equation of the To gain a competitive advantage, the marketing department suggests launching a new product, DC-N&Ns for "Double-Coated" N&Ns. The company would sell bags of 500 grams as well for a unit price of 7.00 euros. The unit variable cost of the new product would be 3.50 euros. Adding a second coating to the N&Ns would require an additional machine (an additional 100.000,00 euros of monthly fixed costs). Otherwise, the current equipment and operators would be common to both products. The marketing department believes that this new product would represent 20.00% of sales volumes. Question 7: What is the multi-product break even volume and revenue? Case information Zoelle gave you the following income statements for the previous two months of activity: Table 1: Financial Income Statement Account February March Revenues 1500000 1125000 Cost of Goods Sold 790000 662500 Gross Margin 710000 462500 Period Cost - 210000 - 189500 Operating Income 500000 275000 I You can assume that the volumes of both months were on the same relevant range. The Chief Marketing Officer expects sales to decrease in April. She forecasted a total volume of 215.000 bags of N&Ns sold. The CEO of the company asked Noelle to make some projections for the next month of activity, April, and to help him make some decisions to achieve a target profit of 350.000,00 euros. Questions Question 1: Knowing that the price of a bag of N&Ns is 5.00 euros, build the profit equation of the To gain a competitive advantage, the marketing department suggests launching a new product, DC-N&Ns for "Double-Coated" N&Ns. The company would sell bags of 500 grams as well for a unit price of 7.00 euros. The unit variable cost of the new product would be 3.50 euros. Adding a second coating to the N&Ns would require an additional machine (an additional 100.000,00 euros of monthly fixed costs). Otherwise, the current equipment and operators would be common to both products. The marketing department believes that this new product would represent 20.00% of sales volumes. Question 7: What is the multi-product break even volume and revenue