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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

  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.

    (b) What is the CM? (Show to two (2) decimal places.)

    81.53%

    85.13%

    65.23%

    76.52

Part 3

  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.

    (c) What is the BEP$ using BEPunits x SP?

    $294,025

    $313,894

    $357,448

    $212,087

Part 4

  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.

    (d) What is the BEP$ using CM to directly compute sales?

    $294,041

    $362,912

    $287,555

    $375,654

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