Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show your work please Question 4 (30 marks) Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560 units of

image text in transcribed

Show your work please

Question 4 (30 marks) Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560 units of the product which represent 143,400. Total fixed costs equal 66,920 and total contribution equals 66,920. Required: a) Considering this information, is Diversity Ltd. selling a profitable amount of its product Star and which would be your advice for the company? Which is the price per unit at which Diversity Ltd. is selling its product? Explain your answer in detail. (8 marks) Page 3 of 4 b) Consider that, after an increase in the market demand of product Star, Diversity Ltd. sells 25% more units of product Star. In this new situation, is Diversity Ltd. selling a profitable amount of its product Star? Explain your answer in detail. (12 marks) c) Draw a graph related to your previous answers in a) and b). Consider the information from the graph, which would be the financial situation of Diversity Ltd. if sales decrease in more than 25%? (10 marks)

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

Students also viewed these Accounting questions

Question

What is the IUPAC name for the following alkane?

Answered: 1 week ago

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago

Question

2. Develop a persuasive topic and thesis

Answered: 1 week ago

Question

1. Define the goals of persuasive speaking

Answered: 1 week ago