Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do this one ... Problem 2 (20 marks): Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on

image text in transcribed

please do this one ...

Problem 2 (20 marks): Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketing plans at an average rate per plan of $3,000. The company would like to achieve a margin of safety percentage of at least 45%. The company's current fixed costs are $400,000 and variable costs average $2,000 per marketing plan. (Consider each of the following separately.) I Required 1. Calculate Marketing Docs' breakeven point and margin of safety in units. 2. Which of the following changes would help Marketing Docs achieve its desired margin of safety? The average revenue per customer increases to $4,000. b. The planned number of marketing plans prepared increases by 5%. Marketing Docs purchases new software that results in a 5% increase to fixed costs but reduces variable costs by 10% per marketing plan. a C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Risk Management Process

Authors: K. H. Spencer Pickett

1st Edition

0471690538, 978-0471690535

More Books

Students also viewed these Accounting questions