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i need help with #3, #4, and #5. Thank you! Child's Play Company Childs Play Company makes a plastic rattle for toddlers. The rattle is
i need help with #3, #4, and #5. Thank you!
Child's Play Company Childs Play Company makes a plastic rattle for toddlers. The rattle is generaly marketed through exclusive retalers located in upscala shopping malls, In late 2021, Dlana Suarez, the president of the company, was considering an alternative marketing plan for 2022 that was presented to her by BA Duffy, the marketing manager. Based on sales from January through October 20e1, Dana expected that 2022 sales would amount to 300,000 unts. Bals alternative marketing plan is presented below: 2022 Marketing Plan: "At the present time, we sel the product to retalars for $8.00 per rathe. Retalars generaly charge the consumers between $9 and $9,50. If we cut our seling price to retalars to $7.50, lexpect that the product will do much better. Ther increased markup will give them the incentive to display our product more prominenty and to promote it more vigorously to customers. We should support this strategy by supplying more promotional materials to retalers, which l expect would be an increase of $4,600 in Advertising and Promotion costs. Based on the price cut and the increase in advertising and promosion, lexpect that we will be able to boost our sales volume by 20 percent to 360,000 units in 2022 ." Diana recelved cost data from the company's CFO, Don Capp. Don expects that the cost data below are also relable estimates for 2022 for a production volume up to 400,000 units. Beyond 400,000 units, the compary would have to rent additonal machines (with a capacity of 100,000 units each), which would increase fixed manulacturing overhead costs by $50,000 per machine. Manufacturing Costs for rattles (based on production volume of 300,000 units): Selling and Administrative Costs for rattles (based on sales volume of 300,000 units): 2. Determine the number of rattien the company would need to sell in 2021 in ceder to break-even, assuming no. changas to selling pilce or coste. Please show vour work and mund fo the noanaw mavt whals nals 3. Assuming the selling price and cost changes in the Marketing Plan are adopted, prepare a CVP Income Statement for 2022, assuming sales and production increase by 20% as out ined in the Marketing Plan. 4. Assuming the selling price and cost changes in the Marketing Plan are adopted, determine the number of rartles the company would need to self in 2022 in order to break-even. Please show your wook and round fo the nesest next whole unit 5. Assuming the selling peice and cost changes in the Marketing Plan ais adopted. determine the number of ratties the company would neted to sell in 2022 in ordet to eam $100,000 in profit. Please ahow your wosk ans round to the newest. next whole und Step by Step Solution
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