Ph3IPOsgood Inc - Profit Goal… How Many Cases Profit Goal...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Osgood Inc. The Finest in Gourmet Dark Chocolate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A Quick Look at Osgood Inc. Account Overview to Determine: Break-Even-Point in Units (cases) Profitability
Background image of page 2
Break-Even-Point Right Now $495,000/$30 per case = 16,500 units sold (Sale Price x Units Sold)-(Variable Cost x Units sold)- Fixed Cost=$0 ($30 x 16,500) – (12 x 16,500) - $180,000 = $0 18 x 16,500 = $180,000 18 x 16,500 / 18 = $180,000 / 18 Units Sold to Break-Even = 10,000 Cases of Syrup
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Click icon to add picture 10,000 Cases x 12 Bottles per Case = 120,000 Bottles of Syrup To Break-Even
Background image of page 4
New Break-Even Point for 10% Inflation $30 x 1.1= $33 (New Price per Case) $1.50 = New Variable Cost per Bottle Fixed Cost ($180,000) Remains the Same New Break-Even Point in Cases = 12,000
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Sales of Osgood’s Product Projected Sales = $495,000 $495,000/$33 = 15,000 cases of syrup 15,000 cases = 180,000 bottles of syrup The Apparent Price Increase Increases the Number of Bottles to Break-Even by 60,000
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Profit Goal… How Many Cases? Profit Goal = $45,000 (Sale Price x Units Sold)-(Variable Cost x Units Sold)-Fixed Cost=$45,000 (33 x 15,000)-(18 x 15,000)-$180,000 = $45,000 15 x 15,000 = $45,000+$180,000 15 x 15,000 = $225,000/15 Units to Profit $45,000 = 15,000 cases Increasing Sales Internet Ad Campaign / Lower Cost Compared to Other Media Types. Customer Incentives / Relationship Marketing References Lake, L. (2010, January 1). Niche Marketing - Define Your Niche Market. Marketing - Marketing Strategy - Marketing Plan - Marketing Careers and Jobs . Retrieved June 15, 2010, from http://marketing.about.com/od/strategytutorials/a/defineyourniche.htm CTU Online. (Ed.). (c. 2010). MUSE (My Unique Student Experience: Profit Formula & Break Even Point [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved May 31, 2010, from CTU Online, Virtual Campus, FIN 220 Financial Statement Analysis: section 02. https://campus.ctuonline.edu...
View Full Document

This note was uploaded on 08/22/2010 for the course ACCOUNTING ACCT203 taught by Professor Carr during the Spring '10 term at Colorado Technical University.

Page1 / 9

Ph3IPOsgood Inc - Profit Goal… How Many Cases Profit Goal...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online