Hugo IncSells Three Sizes of Umbrellas: Small,medium,and Large Required:
A

question 99

Essay

Hugo Inc.sells three sizes of umbrellas: small,medium,and large.The company has annual fixed costs of $390 400.For the past several years,20% of Hugo's sales have been the small and large umbrellas with the remaining 60% being the medium size.Hugo does not expect this to change in the upcoming year.
The following information is also available for each of the umbrellas:
$\begin{array}{rrr}&\underline{\text { Small }} &\underline{ \text { Medium }} &\underline{ \text { Large} } \\\text {Sales price per unit }&8& \$ 14 & \$ 35 \\\text {Variable costs per unit}&3 & 4 & 9\end{array}$
Required:
A. How many total umbrellas does the company need to produce and sell in order to break even?
B. How many medium umbrellas need to be sold in order to break even?
C. If Hugo experiences a higher demand of large umbrellas than it anticipated will the break-even point increase, decrease, or stay the same? Why?

Grasp the significance of the availability heuristic in shaping expectations based on memory.

Identify psychological barriers to effective problem-solving, such as fixation.

Investigate the ways nonhuman species transmit culture and use tools.

Understand the role and limitations of intuition in decision-making.

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Definitions:

Passive Transport

involves the movement of substances across cell membranes without the need for energy input.

Osmosis

The spontaneous movement of solvent molecules through a semi-permeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Salt Water

Water that contains a high concentration of dissolved salts, commonly found in the oceans.

Iodine Potassium Iodide (IKI)

A chemical solution commonly used as a starch indicator in biological and chemical experiments. It changes color in the presence of starch.