Question
Week 2 Part 1 Sterling makes nylon climbing ropes, sold through REI. A 40m-foot rope costs the manufacturer $17.36 to produce. Sterling sells the rope
Week 2
Part 1
Sterling makes nylon climbing ropes, sold through REI. A 40m-foot rope costs the manufacturer $17.36 to produce. Sterling sells the rope directly to REI for $73.95. Fixed costs at Sterling associated with this rope are $225,000. (a) What is the CPU? $62.13 $56.59 $49.11 $45.40
Part 2
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Sterling makes nylon climbing ropes, sold through REI. A 40m-foot rope costs the manufacturer $17.36 to produce. Sterling sells the rope directly to REI for $73.95. Fixed costs at Sterling associated with this rope are $225,000.
(b) What is the CM? (Show to two (2) decimal places.)
81.53%
85.13%
65.23%
76.52
Part 3
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Sterling makes nylon climbing ropes, sold through REI. A 40m-foot rope costs the manufacturer $17.36 to produce. Sterling sells the rope directly to REI for $73.95. Fixed costs at Sterling associated with this rope are $225,000.
(c) What is the BEP$ using BEPunits x SP?
$294,025
$313,894
$357,448
$212,087
Part 4
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Sterling makes nylon climbing ropes, sold through REI. A 40m-foot rope costs the manufacturer $17.36 to produce. Sterling sells the rope directly to REI for $73.95. Fixed costs at Sterling associated with this rope are $225,000.
(d) What is the BEP$ using CM to directly compute sales?
$294,041
$362,912
$287,555
$375,654
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