solve the big star condiment case

big_star_condiments_-case x

Big Star Condiments produces salsa consumed primarily in North American restaurants. Given below is the projected income statement for the company for 2011.

 

 

 

 

 

 

 

 

 

 

 

$40,000

 

 

 

 

 

 

Projected Income Statement (2011)

 

Sales (

100,000

cases at

$6.50

per case)

 

$650,000

 Cost of goods sold:

 Materials

$170,000

 Labor

$205,000

 Fixed manufacturing expenses

$40,000

 Administrative and selling expenses:

 Delivery

$25,000

 Commissions

 Advertising

$10,000

 Travel

$5,000

 Fixed administrative and selling expenses

$12,000

 Total costs

$507,000

 Net income before taxes

$143,000

Create a report answering the following questions:

Variable cost =455000 for 1,00,000 units sold. Per unit VC = 4.55 using in the table above and the fixed cost is 52000.

· Complete the following table using a fully functional Microsoft Excel spreadsheet showing Marginal Revenue (MR), Marginal Cost (MC), Total Revenue (TR), Total Cost (TC), Total Variable Cost (TVC), Total Fixed Cost (TFC), and profits at all possible output levels.

Price

Quantity

Total Revenue

Total Variable Cost

Total Fixed Cost

Total Cost

Profit

$8.00

65,000

$7.75

75,000

$7.50

80,000

$7.25

90,000

$7.00

100,000

$6.75

115,000

$6.50

120,000

· Using Excel, prepare a graph showing the breakeven point and any profit or loss at the current price of $6.50. Explain to the Big Star management the implications of this analysis.

· What is the elasticity coefficient for each price between $6.50 and $7.50? Is the demand elastic or inelastic at these points?

· On the basis of your calculations and the information above, what recommendations would you make to Big Star Condiments in terms of pricing and output levels?

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?