The Following Monthly Data Are Available for the Challenger Company

question 77

Essay

The following monthly data are available for the Challenger Company and its only product,Product SW:

Required:

a) Without resorting to calculations, what is the total contribution margin at the break-even point?
b) Management is contemplating the use of plastic gearing rather than metal gearing in Product SW. This change would reduce variable costs by $15. The company's marketing manager predicts that this would reduce the overall quality of the product and thus would result in a decline in sales to a level of 350 units per month. Should this change be made?
c) Assume that Challenger Company is currently selling 400 units of Product SW per month. Management wants to increase sales and feels that this can be done by cutting the selling price by $25 per unit and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made?
d) Assume that Challenger Company is currently selling 400 units of Product SW. Management wants to automate a portion of the production process for Product SW. The new equipment would reduce direct labour costs by $20 per unit but would result in a monthly rental cost for the new robotic equipment of $10,000. Management believes that the new equipment will increase the reliability of Product SW, thus resulting in an increase in monthly sales of 12%. Should these changes be made?

Understand the structure and functionality of the Internet, including IP addressing and the domain name system.

Identify differences between packet switching and circuit switching technologies.

Recognize key entities responsible for managing internet resources such as domain names and IP addresses.

Comprehend encryption mechanisms and their importance in securing data.

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Definitions:

Human Rights Acts

Legislation that codifies protections related to fundamental human rights and freedoms, often including the right to life, freedom of expression, and equality before the law.

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, not limited to categories of homosexual, heterosexual, or bisexual.

Human Rights Legislation

Laws and statutes designed to protect individuals from discrimination, abuse, and neglect, ensuring equality, freedom, and dignity for all members of society.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or academic setting.