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Mark Make-a-Buck sells jars of beach sand in Florida. His price per jar is $2.50. His historical costs have been: 4. Mark is considering outsourcing

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Mark Make-a-Buck sells jars of beach sand in Florida. His price per jar is $2.50. His historical costs have been: 4. Mark is considering outsourcing the production of the jars of sand. He has a quote from an outside supplier for a price of $1.75 per jar. Mark would still incur the commission to retailers and excavating machine depreciation. a. If Mark would reduce his salary to $500 per month, would this outsourcing be feasible. Use one column to calculate an income statement for this scenario; this is your "outsource scenario". b. What price per jar would Mark need from the supplier to be indifferent to producing the sand himself and accepting their offer? Use the "Goal seek" function to calculate this amount. Set up your Goal seek calculations in a separate column; all numbers should be the same as your Outsource scenario except the supplier's cost per jar. Mark Make-a-Buck sells jars of beach sand in Florida. His price per jar is $2.50. His historical costs have been: 1. a. What is Mark's breakeven point for the year, in terms of both quantity and sales dollars on a pretax basis? b. Mark wants to make a target profit of $20,000 after tax for the year. How many jars of beach sand would he need to sell? Mark's tax rate is 20%. c. Mark generated revenues of $50,000 in 2021 . What was his margin of safety in both dollars and sales quantity? d. What was Mark's operating leverage in 2021 ? 2. Use the Excel Goal seek function to prove that you calculated the correct numbers in 1a. and 1b. above

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