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Unformatted text preview: Putting the Pieces Together It s tough being a part-time celebrity, so Chantelle has invested in a new business venture that will pay rich dividends when the media spotlight has moved on. Jigsaws2Go makes personalised jigsaw puzzles. Customers upload favourite photos and the Jigsaws2Go factory turns them into high quality boxed puzzles the ideal gift for a special occasion. Chantelles accountant is good but hes short of time handling all her other media deals. So he has provided you with some financial information about the business and asked you to complete some questions. Over to you! Jigsaws2Go Financial Information Stage 1 Latest Monthly Data Selling price per unit 6 Variable cost per unit 2 Fixed costs per month 20,000 Maximum output per month 10,000 Actual output per month 7,500 Sales volume % of output 100.0% Sales demand per month 7,500 Stage 2 Chantelle decides to cut her selling price by 1. As a result, demand increases and the factory operates at 90% capacity utilisation. However, fixed costs rise by 2,000 per month as the office team is expanded to handle the additional demand.demand....
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- Spring '11