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Cans plc is developing a new form of 'crinkly can' for soft drinks. The crinkly can has grooves in the side which match the size of the fingers of a hand. The company's research and development department employs 50 people full-time and accounts for 2 per cent of the company's costs. The design manager thinks that it may be impotent in future to develop special designs for particular commercial customers, even if this involves relatively small production runs and a higher price to the customer for each can. He said ' Our profit margins are not yet satisfactory. You would like to maintain our existing level of sales of the standard can at the standard price, but also take advantage of our design skills and sell additional cans of the new style cans in smaller batches but at a higher price.
Question 1: Explain the further information you would need in order to report on the benefits and problems fo creating higher contribution margins and higher profit margins on the basis of the design manager's proposals
How many units should the company sell to make adding the additional line economically feasible/attractive? Adding this line will require hiring different type
What is incremental cost of going outside versus conducting the survey as in the past? Each year, Sunshine Motos surveys 7,500 former and prospective customers
It entered into the following calendar year 2013 purchases and sales transactions.
HOHO (Help Our Homeless Offspring) is a charity that works at reuniting homeless children with their families. It also operates numerous halfway homes for their care, counselling and shelter.
Determine What other options does Cedarburg have to price its products? What internal and external factors should they consider?
Kiel Center sells only on credit (no cash sales). Prior collection patterns describe that 28% of month's sales are gathered in the month of sale, 51% are collected in month after the sale, and 19% are collected in second month after the sale.
Prepare contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.
Explain in detail your findings and recommendations using the appropriate indicators from your analysis
Selected comparative financial statement information of Bluegrass Corporation follows.
Find What is the total manufacturing cost (i.e., both fixed and variable) (assume that 6,000 units is within the company's current relevant range)?
Find What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $126,000?
inc. as discussed in the chapter opener uses a costing system with standard costs for direct materials direct labor and
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