Answer:
BEP 378,000
Explanation:
60 - 24 = 36 contribution margin
every units contribution $36 dollars
36 / 60 = 0.6 CM ratio
each dollar of sale generate 60 cents of contribution
226,800 fixed cost / 0.6 CMR = 378,000 BEP in dollars
Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Answer and Explanation:
The computation of the service level and the corresponding optimal stocking level is shown below:
Given that
Selling price = SP = $4.50
Cost price = CP = $3.00
So,
Salvage value = V = $1.50
Average daily demand (d) = 35 quarts
The standard deviation of daily demand = 4 quarts
based on the above information
Overage cost = (Co) is
= CP - V
= $3.00 - $1.50
= $1.50
Now
Underage cost= (Cu)
= SP - CP
= $4.50 - $3.00
= $1.50
So,
Service level is
= Cu ÷ (Co + Cu)
= 1.50 ÷ (1.50 + 1.50)
= 1.50 ÷ 3.00
= 0.50
= 50%
Now
At 50 % service level, the value of Z is 0
So,
Optimal stocking level is
= d + Z × standard deviation
= 35 + (0 × 4)
= 35 + 0
= 35 quarts
Answer:
mid-calorie soft drinks such as Pepsi Next (2012) have not been successful in the past.
Explanation:
The new Pespsi true is a great product that offers the advantage of having the same flavor as Pepsi but lower calorie content of only 60 calories. This should sell well with consumers that are looking for lower calorie options.
However if there was a similar product like Pepsi True called Pepsi Next in 2012 that was mid-calories and was not successful, this could be a show stopper. People's perceptions of Pepsi Next will affect Pepsi True as they will feel it is just a repackaged Pepsi Next.
This will most likely lead to failure of the product similar to what happened with Pepsi Next.
