{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Bill French excel

# Bill French excel - =60000*12=720000,NewCpriceisdoubled...

This preview shows pages 1–3. Sign up to view the full content.

Trish McGrew MBA733 Bill French case Additional Investment in C = 60000*12 = 720000, New C price is double A's new volume is 2/3 and C's volume is increased by 450000 A B New Sale Volume 400000 400000 Sale Price 10 9 Sales Revenus  4000000 3600000 Variable Cost 7.5 3.75 Variable Cost to sales 0.75 0.42 Unit contribution to sales 0.25 0.58 Utilization of capacity 20.00% 20.00% Total Variable Cost 3000000 1500000 Fixed Cost 960000 1560000 Profit 40000 540000 BEP (Units)  384000 297143 BEP (Dollars)  Profit After Tax 600000 Including Govt. Share 1200000 Tax Rate 16.67% Profit Required 1400000 Contribution Margin 3.56 Fixed Cost 3690000 Number of Units required 1428629 \$9,926,929  New Union Demand = 10% increase in Variable cost New Contribution Margin 3.22 Number of Units for same dividend 1479397 \$10,279,699  Number of Units for new dividend 1578644 \$10,969,322

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

View Full Document
ed C Total 950000 1750000 4.8 6.95 4560000 12160000
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

Bill French excel - =60000*12=720000,NewCpriceisdoubled...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online