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Mojo Co. is considering three regions for the manufacturing site of its new product: Indonesia, Mexico, and Canada. The product will be sold to retail
Mojo Co. is considering three regions for the manufacturing site of its new product: Indonesia, Mexico, and Canada. The product will be sold to retail outlets in Canada at $47.50 per unit. These retail outlets add their own markup when selling to final customers. The three countries differ in their fixed costs and variable costs per product. Annual Fixed Variable Variable Costs Manufacturing Marketing Costs per Unit and Distribution Costs per Unit Indonesia $6,400,000 $5.2 $12.80 Mexico $4,400,000 $9.50 $21.80 Canada $10,200,000 $19.30 $6.20 Required (show all of your work): A. Compute the breakeven point of Mojo in both (a) units sold and (b) revenues for each of the three countries considered. B. If Mojo expects to sell 1,350,000 units this year, what is the budgeted operating income for each of the three countries considered? C. What level of sales (in units) would be required to produce the same operating income in Mexico and in Canada? What would be the operating income in Indonesia at that volume of sales? D. What is your decision-making interpretation for each
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