Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using the table I have almost completed, I need some help answering the following questions they said to estimate costs of each. just has to
Using the table I have almost completed, I need some help answering the following questions
they said to estimate costs of each. just has to be reasonable
data missing is on the chart is data we have to make ouselves
Question 2(a) - Small Business and Product My company is called Keep your pets happy and the product is a dog chew toy called 'Chewy the bone' delivered from door to door. Name of Cost Fixed/Variable $value per item Explanation as to why fixed or variable Materials Variable Cost of materials will change based on demand and sales. Electricity for production Variable If we are producing more products, we will require more electricity Fuel for Delivery car Variable If we need to make more deliveries, we will require more fuel for the car. Advertisements Variable The more you want to advertise your business, the more it will cost you Machine Cost They are fixed as they are a depreciating expense. Fixed b. Estimate a reasonable selling price per unit for your product with an explanation as to how you determined your selling price. c. Using your figures calculate your Breakeven point in both units and dollars ($) showing all calculations. d. State whether you require a profit of either $5,000, $15,000 or $30,000 and then calculate your new breakeven point, in both units and dollars ($) showing all calculations. e. Define and calculate the 'Margin of Safety, in both units and dollars, assuming you sell 35,000 units. Ensure you include all calculations. Question 2(a) - Small Business and Product My company is called Keep your pets happy and the product is a dog chew toy called 'Chewy the bone' delivered from door to door. Name of Cost Fixed/Variable $value per item Explanation as to why fixed or variable Materials Variable Cost of materials will change based on demand and sales. Electricity for production Variable If we are producing more products, we will require more electricity Fuel for Delivery car Variable If we need to make more deliveries, we will require more fuel for the car. Advertisements Variable The more you want to advertise your business, the more it will cost you Machine Cost They are fixed as they are a depreciating expense. Fixed b. Estimate a reasonable selling price per unit for your product with an explanation as to how you determined your selling price. c. Using your figures calculate your Breakeven point in both units and dollars ($) showing all calculations. d. State whether you require a profit of either $5,000, $15,000 or $30,000 and then calculate your new breakeven point, in both units and dollars ($) showing all calculations. e. Define and calculate the 'Margin of Safety, in both units and dollars, assuming you sell 35,000 units. Ensure you include all calculations 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