You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
The new owners are evaluating the operating structure, and you have two possible alternatives. One alternative requires a high level of investment in fixed costs compared to the other alternative. Jorge, your supervisor, has assigned you the task of evaluating the two alternatives.
Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.
Deadline Approaching? Get Fast, Reliable Help with Your Essay Now!
Simply post your question and get it answered by a professional tutor. It's as simple as that!
Write My Essay For MeAlternative 1 Alternative 2
Variable Cost $2.20 $2.70
Fixed Cost $80,000 $30,000
Total Assets $350,000 $350,000
Tasks:
Jorge has asked you to provide detailed responses to the following questions:
- ****Analyze how the CVP analysis helps management in the planning stage of a new business.
- ****What is the break-even quantity for each of the investment alternatives?
- ****Analyze the breakeven differences between the two alternatives. What does the breakeven quantity tell you?
- ****Which alternative would you recommend to the company? Explain the pros and cons of each alternative and the reasons for your selection.
Submission Details:
- Submit a 3-4 page Microsoft Word document, using APA style.
- attached is Project 1 to use to build on.
Do you find yourself approaching a tight assignment deadline? We have a simple solution for you! Just complete our order form, providing your specific instructions. Rest assured that our team consists of professional writers who excel in their respective fields of study. They utilize extensive databases, top-notch online libraries, and up-to-date periodicals and journals to ensure the delivery of papers of the utmost quality, tailored to your requirements. Trust us when we say that thorough research is conducted for every essay, and our expertise in various topics is unparalleled. Furthermore, we have a diverse team of writers to cover a wide range of disciplines. Be assured that all our papers are created from scratch, guaranteeing originality and uniqueness.
Write my essays. We write papers from scratch and within your selected deadline. Just give clear instructions and your work is done
