Carrie Sells Three Products Total Fixed Costs Are $100,000 Marketing and $125,000 Administrative

question 114

Essay

Carrie sells three products. Last month's results are as follows:
$$\begin{array} { l c c c c } & \mathrm { P } 1 & \mathrm { P } 2 & \mathrm { P3 } \\\text { Reverues } & \$ 1 5 0 , 0 0 0 & \$ 2 2 5 , 0 0 0 & \$ 2 2 5 , 0 0 0 \\\text { Variable costs } & 60,000 & 210,000 & 120,000\end{array}$$
Total fixed costs are $100,000 marketing and $125,000 administrative.
Required:
(a) What was the contribution margin ratio?
(b) What sales volume does Carrie need to achieve a $100,000 monthly profit?
(c) What will profit be if Carrie increases sales by 20%?

Understand the concept and significance of goal setting in business, particularly in the context of quality, market share, customer satisfaction, and employee welfare.

Identify different types of business goals (e.g., profit, sales, social responsibility) and their impact on company strategy and operations.

Recognize how companies measure and report performance in relation to set goals using marketing metrics.

Analyze the relationship between customer satisfaction, quality goals, and organizational performance.

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Definitions:

Frequency Of Occurrence

Frequency of occurrence refers to how often a specific event, action, or behavior happens within a defined time period or dataset, often used in risk assessment and statistical analysis.

Vertical Axis

In a chart or graph, the axis that is oriented vertically (up-down) and typically represents the range of values or categories being measured.

Cost Of Conformance

The expenses associated with ensuring a product, service, or process meets the required standards and specifications, including prevention and appraisal costs.

Quality Improvement

Quality improvement involves systematic efforts to enhance the efficiency, effectiveness, and performance of processes or products.