Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please only answer requirement 2, which includes part a,b and c. thank you!! Personas prepares marketing plans for growing businesses. For 2017 , budgeted tevenues
please only answer requirement 2, which includes part a,b and c. thank you!!
Personas prepares marketing plans for growing businesses. For 2017 , budgeted tevenues are $2,400,000 based on 600 marketing plans, at an average rate per plan of $4,000. The company would like to achieve a margin of sarefy percentage of at least 25%. The companyd's current fixed costs are $1,890,000 and variable costs average $500 per marketing plan. Requirement 2. Which of the following changes would help Personas achieve its desired margin of safefy? a. Average revenue per customer increases to 55,000, b. Planned number of marketing paans prepared increases by 5%, c. Personas purchases new software that results in a 8% increase to fixed costs but reduces variable costs by 16% per marketing plan. (Round all matgin of salety percentages to the nearest whole percent, X X X. up to the next whole unit.) thow colrulatis tha rument mardin of safety percentage: a. The atverage revenue per customer increases to $5,000. Personas' breakeven number of units is now plans and its margin of safely percentage is now This change help Personas achieve its desired inargin of safety of 25% Requirements (Consider each of the following separately.) 1. Calculate Personas' breakeven point and margin of safety in units. 2. Which of the following changes would help Personas achieve its desired margin of safety? a. The average revenue per customer increases to $5,000. b. The planned number of marketing plans prepared increases by 5%. c. Personas purchases new software that results in a 8% increase to fixed costs but reduces variable costs by 16% per marketing plan 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