Question 2 (4 points) Josh's Juice Boxes is looking at purchasing a new machine to produce...

 

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Question 2 (4 points) Josh's Juice Boxes is looking at purchasing a new machine to produce his juice boxes. - Current Situation: Fixed Cost: $20,000/year, Variable Cost: $6/pack of juice boxes - New Machine: Fixed Cost: $22,000/year, Variable Cost: $3/pack of juice boxes Josh is worried about the level or return the company will make - not just if it will sell enough to breakeven, but how much it will need to sell in order to start making more money with this new machine. Currently he is able to sell 3000 packs of juice boxes at $15 per pack. Question 1 What tool should be used to solve this question? A. Decision Point B. CVP C. Breakeven Answer "A", "B" or "C" in the question 1 blank below Question 2 What formula is used to solve this question? A. =CFC/(P-VC) B. =(incremental CFC)/(incremental contribution) C. incremental contribution > incremental CFC Answer "A", "B" or "C" in the question 2 blank below Question 3 How many unit sales will Josh need to make in order to make more money with the new machinery? Answer and round to the nearest whole number in question 3 blank below. Do not input dollar signs, commas or periods. If your answer is 45,678.5 enter it as 45679 Question 4 Based on this quantitative analysis, should she invest in the new machine? Answer "yes" or "no" in the question 4 blank below Question 2 (4 points) Josh's Juice Boxes is looking at purchasing a new machine to produce his juice boxes. - Current Situation: Fixed Cost: $20,000/year, Variable Cost: $6/pack of juice boxes - New Machine: Fixed Cost: $22,000/year, Variable Cost: $3/pack of juice boxes Josh is worried about the level or return the company will make - not just if it will sell enough to breakeven, but how much it will need to sell in order to start making more money with this new machine. Currently he is able to sell 3000 packs of juice boxes at $15 per pack. Question 1 What tool should be used to solve this question? A. Decision Point B. CVP C. Breakeven Answer "A", "B" or "C" in the question 1 blank below Question 2 What formula is used to solve this question? A. =CFC/(P-VC) B. =(incremental CFC)/(incremental contribution) C. incremental contribution > incremental CFC Answer "A", "B" or "C" in the question 2 blank below Question 3 How many unit sales will Josh need to make in order to make more money with the new machinery? Answer and round to the nearest whole number in question 3 blank below. Do not input dollar signs, commas or periods. If your answer is 45,678.5 enter it as 45679 Question 4 Based on this quantitative analysis, should she invest in the new machine? Answer "yes" or "no" in the question 4 blank below

Answer rating: 100% (QA)

Answer Question 1 B CVP Question 2 A CFCPVC Question 3 To calculate the number of unit sales n... View the full answer