Draw View Share References Review Tell me Design Layout Mailings > > 0 v EE A A A.D 2 es New... 10 A 2A !!! lol III il Dictate Styles Styles Pane TU al X X Break-even analysis Aquarius Games Inc. has finished a new video game, Triathlon Challenge Management is now considering its marketing strategies. The following information is available: Anticipated in 525 Verbiecte 545 Acipated sales volumen 100.000 Production con 59.000.000 Anteering costi $15.000.000 I Three managers, Haley Chipana. Dan Gillespie, and Sally Towers had the following discussion of ways to increase the profitability of this new offering: Haley: I think we need to think of some way to increase our profitability. Do you have any ideas? Dan: Well, I think the best strategy would be to become aggressive on price Haley How aggressive? Dan: If we drop the price to 560 per unit and maintain our advertising budget at $15,000,000, I think we will generate sales of 2,000,000 units. Haley: I think that's the wrong way to go. You're giving too much up on price. Instead, I think we need to follow an aggressive advertising strategy Dan: How aggressive? Haley If we increase our advertising to a total of $20,000,000, we should be able to increase sales volume to 1.200,000 units without any change in price Dan: Intindible Wallwashinerseindvertising cost IK English (United States) Focus 359 words A able Window Help Save GUE. OFT *0133% Week 12 CVP-Case Study Modified - Compatibility Mode Saved to my M Mailings Review View Tell me Share Draw Design Layout References Times New... 10 v AA A 1 21 All V Styles Styles Pane Dictate Dan: I don't think that's reasonable. We'll never cover the increased advertising costs. Sally: If we reduce the anticipated selling price by 10%, we can generate sales of 1,500,000 video games. Although it will increase the cost, we should reward our sales associates with a $3 sales commission for each unit sold. Also, let's find a way to reduce the production cost to $8,000,000 Which strategy is best: 1) Do n8thing? 2) Follow the advice of Dan Gillespie? 3) Haley Chipana's strategy? 4) Or Sally Tower's strategy? Prepare each manager's contribution margin income statement below and SHOW ALL WORK. Then, explain which strategy is best 1 of 2 (AA 5) Accounting Assignment #5 - Cost: Volume-Profit Chapter 11.3 - Case study ACCT 2700: Accounting Show your work Do Nothing Strategy Sales Variable Cost Contribution Margin Pited Cost Income from Operations Show your work Dan's Strategy Sales Variable Cost English (United States) 359 words O Focus A W ity Mode - Saved to Insert Draw Design Layout References Mailings Review View Tell me sh Times New... 10 + A A A A Aa Mili A. a B V
