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E Homework: Ch 3 Homework Question 2, E3-32 (simil... Part 1 of 11 HW Score: 0%, 0 of 28 points O Points: 0 of 4
E Homework: Ch 3 Homework Question 2, E3-32 (simil... Part 1 of 11 HW Score: 0%, 0 of 28 points O Points: 0 of 4 4 Save Plush Decor, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Spain, Brazil, and Singapore. All area rugs are to be sold to retail outlets in the United States for $360 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries. (Click the icon to view the cost data) Read the requirements , Requirement 1. Compute the breakeven point for Plush Decor, Inc., in each country in (a) units sold and (b) revenues Determine the formulas for the breakeven point in units and the breakeven point in revenues. Begin with the breakeven point in units, then the breakeven point in revenues. Breakeven point in units - - X - X Requirements Data table 1. Compute the breakeven point for Plush Decor, Inc., in each country in (a) units sold and (b) revenues. 2. If Plush Decor, Inc., plans to produce and sell 85,000 rugs in 2020, what is the budgeted operating income for each of the three manufacturing locations? Comment on the results. Country Spain Brazil Singapore Variable Marketing Sales Price to Annual Fixed Variable Manufacturing and Distribution Cost Retail Outlets Costs Cost per Area Rug per Area Rug S 360.00 $ 7.995,000 $ 135.00 $ 20.00 360.00 5,232,500 160.00 25.00 360.00 9,453,500 145.00 30.00 Print Done Print Done Help me solve this Etext pages Get more help Clear all Check
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