How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Scott Your Own Question

Scott
Scott, MIT Graduate
Category: Homework
Satisfied Customers: 3040
Experience:  MIT Graduate (Math, Programming, Science, and Music)
3546829
Type Your Homework Question Here...
Scott is online now
A new question is answered every 9 seconds

Help! Need to show breakeven point!

Customer Question

Golden Star Winery Case Golden Star Winery produces midlevel wines consumed primarily in North America. Given below is the projected income statement for the company for 2011.

Projected Income Statement (2011)

Sales (100,000 cases at $7 per case)

$700,000

Cost of goods sold:

Materials

$180,000

Labor

$225,000

Fixed manufacturing expenses

$45,000

 

Administrative and selling expenses:

Delivery

$30,000

Commissions

$50,000

Advertising

$10,000

Travel

$5,000

Fixed administrative and selling expenses

$15,000

Total expenses

$560,000

Net income before taxes

$140,000

Create a report answering the following questions: • Complete the following table in a fully functional Microsoft Excel spreadsheet.

Price

Quantity

Total Revenue

Total Variable Cost

Total Fixed Cost

Total Cost

Profit

$8.00

65,000

 

 

 

 

 

$7.75

75,000

 

 

 

 

 

$7.50

80,000

 

 

 

 

 

$7.25

90,000

 

 

 

 

 

$7.00

100,000

 

 

 

 

 

$6.75

115,000

 

 

 

 

 

$6.50

120,000

 

 

 

 

 

PriceQuantityTotal RevenueTotal Variable CostTotal Fixed CostTotal CostProfit
$8.00 65,000 520,000 325,000 60,000 385,000 135,000
$7.75 75,000 581,250 375,000 60,000 435,000 146,000
$7.50 80,000 600,000 400,000 60,000 460,000 140,000
$7.25 90,000 652,500 450,000 60,000 510,000 142,500
$7.00 100,000 700,000 500,000 60,000 560,000 140,000
$6.75 115,000 776,250 575,000 60,000 635,000 141,250
$6.50 120,000 780,000 600,000 60,000 660,000 120,000

Using Excel, prepare a graph showing the breakeven point and any profit or loss at the current price of $7.

Explain to the Golden Star management the implications of this analysis. •

What is the elasticity coefficient for each price between $6.50 and $7.50? Is the demand elastic or inelastic at these points? How can this information be useful to management in its pricing and output decisions? • On the basis of your calculations and the information above, what recommendations would you make to Golden Star in terms of price and output levels?

 

I have missed my deadline, but got an extension until tomorrow- someone help!

Submitted: 4 years ago.
Category: Homework

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3458
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3124
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2385
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1988
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1876
    Bachelors Degree and CPA with Accounting work experience
  • http://ww2.justanswer.com/uploads/avremote/photoa.jpg Seanna's Avatar

    Seanna

    Tutor

    Satisfied Customers:

    1781
    3,000+ satisfied customers, all topics, A+ work
 
 
 
Chat Now With A Tutor
Scott
Scott
MIT Graduate
3040 Satisfied Customers
MIT Graduate (Math, Programming, Science, and Music)