FINAL-GROUP PORTION - Phase 2 Costing. Claudia Pelaez...

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Phase 2 Costing. Claudia Pelaez Colorado Technical University Online ACC350-0904A-02 : Managerial Accounting Practices . Instructor: Jacob Gordon October 25, 2009 Quote for 150 Clocks There are several issues that Claire’s needs to analyze before taking the decision about the new bid for the 150 clocks. How many clocks and at what price the company will need to provide before they reach the break even point? In this case we have to start analyzing the contribution margin and then the break even point, because with this information the company will know exactly the volume of sales required to start making profits. The company won’t make a profit until their sales volume exceeds the break even point. I’d say that Claire’s cannot lose this bid, in order for them to get the contract they can lower the price until $599. I will make the analysis based on this price, so we can understand why Claire’s can charge this amount and still make profits.
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This note was uploaded on 10/29/2011 for the course ACCOUNTING ac201 taught by Professor Schmidt during the Spring '11 term at Colorado Technical University.

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FINAL-GROUP PORTION - Phase 2 Costing. Claudia Pelaez...

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