I-22.02 Problem

I-22.02 Problem - TurboTummy Expense Report For a Typical...

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I-22.02 TurboTummy manufactures and sells an exercise mat. The mat is sold via 30-minute televised commercials that run on periodic Saturdays. Below are typical results for a Saturday campaign, assuming 2,750 units were actually sold. However, volume has been known to fluctuate from 2,500 to 4,000 units. Prepare a flexible budget scenario, assuming volumes of 2,500, 3,000, 3,500, and 4,000 units. If Turbo Tummy wants to at least cover costs at volumes of 3,000 units and above, what is the minimum selling price per mat?
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Unformatted text preview: TurboTummy Expense Report For a Typical Campaign Selling 2,750 Units Variable expenses: TurboTummy mat $ 55,000 Shipping and handling 8,250 Toll-free phone 2,750 Credit card fees 5,500 Miscellaneous items 11,000 Total variable expenses $ 82,500 Fixed expenses TV commercial $ 45,000 Actors and models 5,000 Studio rental 15,000 Total fixed expenses $ 65,000 Total expenses $ 147,500...
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