Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SHOW BREAKEVENT POINT CALCULATIION Question 1 35 pts Showing your calculation find the instant coffee sales breakeven point (in units) for 2019 in Mexico, for

SHOW BREAKEVENT POINT CALCULATIIONimage text in transcribed

Question 1 35 pts Showing your calculation find the instant coffee sales breakeven point (in units) for 2019 in Mexico, for NESTLE, a company that manufactures and sales instant coffee product in a 300 grams presentation, in Mexico, and want to have an EBITDA (operating profit) of $1.2 million US dollars in 2019. Consider that its Cost of goods sold for that product is 40 pesos per unit and its expenses in Mexico are $1,950,000 Mexican pesos per month. Its pricing strategy is to sell each unit in 2019 for the average price of the last 5 years, so they can be very competitive. Additional information: 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11.13 13.51 12.64 12.42 13.17 12.77 13.29 15.85 18.66 18.9 19.2 Exchange Rate (in pesos per 1 dollar) Annual Sales in Mexico (in '000 pesos) Annual Sales in Mexico (in '000 units) 10000 12343 15236 18806 23213 28652 353664365353882 66509 70000 90.9 112.2 138.49 170.94 211260.44321.47 396.8 489.8 604.56 702 Edit View Insert Format Tools Table gi C w 75F

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

Public Finance

Authors: Harvey Rosen

6th International Edition

0071121234, 978-0071121231

More Books

Students also viewed these Finance questions

Question

What is a target cost per unit?

Answered: 1 week ago

Question

What skills do you feel you need to develop?

Answered: 1 week ago

Question

How is the NDAA used to shape defense policies indirectly?

Answered: 1 week ago