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Calculate how many liters of Blue Goo must be sold to break even.

Calculate how many liters of Blue Goo must be sold to break even.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Management is getting excited about launching into the new market segment. However, they still have their head screwed on a little.. They have asked you to let them know how many liters of Blue Goo must be sold just in order to break even. For this, you have been given the following information: Fixed Cost = $46,763 Variables costs $12.31 per liter Anticipated sales price $41.5 Incentive discount 5.5% %3D Calculate how many liters of Blue Goo must be sold to break even.
Transcribed Image Text:Management is getting excited about launching into the new market segment. However, they still have their head screwed on a little.. They have asked you to let them know how many liters of Blue Goo must be sold just in order to break even. For this, you have been given the following information: Fixed Cost = $46,763 Variables costs $12.31 per liter Anticipated sales price $41.5 Incentive discount 5.5% %3D Calculate how many liters of Blue Goo must be sold to break even.
Expert Solution
Step 1

FIXED COST(FC) = $46763

VARIABLE COST(VC) = $12.31

ANTICIPATED SALES PRICE (SP)= $41.5

DISCOUNT= 5.5% OF 41.5 = $2.28

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