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I just need help with questions #9 and #10. Thank you! (please show work) ( 8 points) Assume you direct market your pumpkins at a
I just need help with questions #9 and #10.
Thank you!
(please show work)
( 8 points) Assume you direct market your pumpkins at a roadside farm stand called The Park-n-Pick Pumpkin Patch during the month of October. Based on your marketing plan, you expect to sell 5,200 pumpkins at $2.25 each. The variable cost to grow and sell each pumpkin is $1.50 each. Your overhead costs at The Park-n-Pick Pumpkin Patch are $3,500. 1) How many pumpkins must you sell to breakeven? Round to the nearest pumpkin. $3500/($2.25$1.50)X=5,833 2) If you sell the 5,200 pumpkins that you estimated in your marketing plan, will you make a profit or loss and how much is that profit or loss? Round to the nearest cent. Tr=2.255200=11700TC=3500+1.55200=113001170011300=400Profitof$400 3) Calculate the contribution margin percentage. [(117007800)/11700100=33% 4) Calculate the breakeven point in dollars if the overhead costs increase by $500 because of remodeling the storefront of the farm stand, assuming everything else remains the same. Round to the nearest cent. 4000/.33=12001=$12001 5) What is the minimum change in dollar sales needed to break even because of this increase in overhead costs? Round to the nearest cent. =12,0013,500=$8,501 6) How many pumpkins must be sold to breakeven after the storefront remodel? Round to the nearest pumpkin. $4000/($2.25$1.50)=6,667 7) If you have a fixed profit objective of $1,500, what should your selling price be per pumpkin (consider that the storefront remodel has occurred)? Round to the nearest cent. =$1.76 8) Should you revisit the pricing strategy in your marketing plan based on this fixed profit objective or should you increase or decrease your profit goal? Explain. You should revisit your pricing strategy to meet your financial objectives, either by increasing your profit goal or finding ways to reduce costs or boost sales. 9) (4 points) Use incremental analysis to evaluate the effects of a 2 for 1 sale at Jen and Lenny's ice cream parlor using the contribution concept. Jen and Lenny's charges $2.00 for a single-dip ice cream cone. Variable expenses are $0.75 per cone. A Halloween promotion is planned for the last week of October. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 500 additional cones would be sold and that 700 cones would be given away. Advertising costs for the promotion would be $200. Calculate the following for the last week in October. Round to the nearest cent or unit. Then explain if the promotion should occur. 10) (3 points) Rachel's Radishes, LC can invest capital in $100 increments and has three alternatives for the capital investment. The values in the table are the marginal revenues that result from each successive $100 of capital invested. Assume Rachel has only $800 in capital. Use the equi-marginal principle of allocation to determine how this capital should be allocated among these alternatives. Fertilizer Seed Chemicals Step by Step Solution
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