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Question - (a) What percentage increase in sales (November/December) would be required to exceed the €10 million operating income threshold (assuming that standard unit costs stay constant)?
(b) What percentage increase in production (November/December) would be required to exceed the €10 million operating income threshold (assuming that standard unit costs stay constant)?
(c) What bad debt expense percentage would be required to exceed the €10 million operating income threshold?
(d) Assume that Lena believes that anything more than a 6 percent sales increase is unrealistic, and that the auditors will only allow a decrease in the bad debt percentage to 2.25 percent. Given those parameters, and assuming the management team pursues these strategies, how much does Matt need to increase production to exceed the €10 million operating income threshold?
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