Record 1-2-3 is a top-selling electronic spreadsheet product. Record is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Record 1-2-3, 4.0 or earlierversions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs:(Click the icon to view the price and cost information.)The fixed costs of Record 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers.Read the requirements.Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained?The breakeven point isunits for new customers andunits for upgrade customers.Requirements1.2.3.What is the Record 1-2-3 5.0 breakeven point in units, assuming that theplanned 60% / 40% sales mix is attained?If the sales mix is attained, what is the operating income when 170,000 totalunits are sold?Show how the breakeven point in units changes with the following customermixes:a. New 50% and upgrade 50%b. New 80% and upgrade 20%c. Comment on the results.PrintDoneXData TableSelling priceVariable costsManufacturingMarketingContribution margin$New Customers Upgrade Customers$ 225$Print2060S80145SDone205$1202595 The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup ofcoffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income taxrate is 30%. Target net income is $117,600.Requirements1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $117,600?3. Compute net income if the number of customers is 155,000.

Breakeven point in units is calculated by keeping the fixed cost at numerator and contribution…

Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? The breakeven point is units for new customers and units for upgrade customers.

Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? The breakeven point is units for new customers and units for upgrade customers.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 5P: Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two...

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(Q.7) Data 1-2-3 is a top-selling electronic spreadsheet product Data is about to release version 5.0. 11 divides its customers into two groups: new customers and upgrade customers (those who previously purchased Data 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: New Customers $275 Selling price Variable costs Manufacturing Marketing Contribution margin $35 65 100 $175 Upgrade Customers $100 $35 15 50 $ 50 The fixed costs of Data 1-2-3, 5.0 are $15,000,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Questions: 1. Calculate the Data 1-2-3, 5.0 breakeven point in units (number of bundles, new customers, upgrade customers) assuming that the planned 60% 40% sales mix is attained? 2. If the sales mix is altained, what is the operating income when 220,000 total units are sold? 9
Swippy Software offers three software products: a word processing software, a spreadsheet software, and an accounting software. Information for the stand-alone selling prices and costs of its individual products is as follows: Stand-Alone Selling Price, Cost Word Processing (WP) $75 $18 Spreadsheet (SS) $90 $20 Accounting Software (AS) $65 $25 Recently, Swippy Software has begun offering software bundles, which includes all three programs at a discounted price. The bundle price for the software is $185.00 Using the unit cost as the weights, allocate the bundled price to the three programs using the stand-alone revenue-allocation method. Allocate the bundled price to the three types products using the incremental revenue-allocation method. Assume Spreadsheets is the primary product, followed by Word Processing, and then Accounting Software.
You are creating part of an Excel model that will set the price of an item based on whether the customer is a preferred customer or not. The partially completed model in the attached file. <-- Click here to download the Excel file. In cell B6, you will enter the formula that will use this logic:When preferred status is Yes, the price is the preferred price. Otherwise the price is the regular price. Customer ID: 68YJW Prices: Regular $26.95 Customer Name Reggie Greene Preferred $21.95 Preferred? Y/N: Yes Customer Price
Relevant costs, opportunity costs. Gavin Martin, the general manager of Oregano Software, must decide when to release the new version of Oregano’s spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is complete; however, the diskettes, compact discs, and user manuals have not yet been produced. The product can be shipped starting July 1, 2017. The major problem is that Oregano has overstocked the previous version of its spreadsheet package, Easyspread 1.0. Martin knows that once Easyspread 2.0 is introduced, Oregano will not be able to sell any more units of Easyspread 1.0. Rather than just throwing away the inventory of Easyspread 1.0, Martin is wondering if it might be better to continue to sell Easyspread 1.0 for the next three months and introduce Easyspread 2.0 on October 1, 2017, when the inventory of Easyspread 1.0 will be sold out. The following information is available:
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The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera B Price: 310). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model: NA = 192 - 0.5PA + 0.25PB NB = 305 + 0.08PA - 0.6PB Construct a model for the total revenue and implement it on a spreadsheet. Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10. Max profit occurs at Camera A price of $ . Max profit occurs at Camera B price of $ .
Yahoo was using Huawei's hardware and technology for their internet related business platforms. Now due to the new policy of the company, Yahoo wants to use Apple's Hardware and technology. Yahoo says features given by Apple are better than Huawei. The switching cost that Yahoo is going to face is_ O a. Information and data related switching costs. O b. Contractual commitment related switching costs. c. All of these O d. Financial commitment related switching costs.
A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Printer $100 Bundle $950 $1,000 $750 Laptop $850 Customer A Customer B $950 $600 $50 $150 Customer C Assume for simplicity the marginal cost of production for laptops and printers is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total? To maximize profit using individual prices, the firm should charge a price for laptops of p= 650 and a price for printers of p= 100 (Enter your responses as whole numbers.)
Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2.…
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: Sales orders Sales calls Service calls Average order size Manufacturing cost/unit Customer costs: Processing sales orders Selling goods Servicing goods Sales (in units) Sales Allocation Ordering costs Selling costs Service costs Total 9.23 per unit JIT $ JIT Distributors $3,180,000 1,120,000 1,050,000 $5,350,000 Total 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. 650,000 97,500,000 2,675,000…
Apple produces tablet computers. Identify some of the variable and fixed product costs associated with that production. Hint: Limit costs to product costs.
eBook Show Me How Question Content Area Measure Maps Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before 2 days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.’s current customer retention rate is 60%. The company estimates that for every 1%…