Tuesday, September 24, 2013

Contribution Margin and Breakeven Analysis

Aunt Connies Cookies is a brand that is synonymous with delicious lemon crème and significant deal cookies throughout the east and mid-west. mare Villanueva, the grandniece of Connie Rochoa, is now the CEO of the family-owned business. She has appointed Team C as the COO. Team C will make decisions with a follow to maximize the firms component part edge and run hold dears. Aunt Connies Cookies was approached to provoke a stack order of 1 million packs of rattling big money cookies to be immaculate in one months time. The caller-up compulsory to decide if finish this order will be a good option. female horse stated that the total role bank and operating profit from the lemon créme cookies are slight than the real heap cookies. She suggested that we reduce the current production spate for lemon créme and farm more real mint to accommodate the bulk order. In pass judgment the bulk order, Marias confidential cultivation should not be followed. To maxim ize the operating product, it is better to bugger off more of the lemon créme cookies because it has a greater contribution adjustment per unit than the real mint. This meant that the current production of real mint cookies should be reduced. The bulk order should not be considered when the cookie production for both types of cookies exceeds production capacity.
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This would mean that the connection is incapable of completing the order. Also, Aunt Cookies should not consider judge a bulk order if the asking sales value per unit for the order is at a price that would capture results where the contribution margin is less than the fixed salutes. Although the cont! ribution margin may lull be greater than zero, it will appease produce a loss for the company. Therefore, it would not be cost it to the company to fulfill the order. If you want to get a fitting essay, order it on our website: OrderCustomPaper.com

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