Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Multiple-Level Break-Even Analysis Kucera Associates provides marketing services for a number of small manufacturing firms.Kucera receives a commission of 10 percent of sales. Operating costs
Multiple-Level Break-Even Analysis Kucera Associates provides marketing services for a number of small manufacturing firms.Kucera receives a commission of 10 percent of sales. Operating costs are as follows: Unit-level costs $ 0.05 per sales dollar Sales-level costs $400 per sales order Customer-level costs $ 1,000 per customer per year Facility-level costs $ 75,000 per year (a) Determine the minimum order size in sales dollars for Kucera to break even on an order. $ 8,000 (b) Assuming an average customer places five orders per year, determine the minimum annual sales required to break even on a customer $ 21,250 (c) What is the average order size in (b)? $ 5,313 (d) Assuming Kucera currently serves 100 customers, with each placing an average of five orders per year, determine the minimum annual sales required to break even. $ 139,375 (e) What is the average order size in (d)? $ 8,711 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started