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| Teaching Since: | Apr 2017 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Vine Presl dent for Sala and Marketing Sam TottJer is trylng to plan For the coming year in tem'ls of production needs to meet the sales demand. He is aim trying to
determine ways in whlch the company‘s profits might be increased in the coming year. Waterways markets a slmple water control and timer that it mass-produces. During 2016, the company mld 596,000 units at an average selllng price of per mlutlon $4.20
per unit. The variable expenses were $1,900,080, and the fixed expenses were $633, 256. What is the product‘s contributlon margln ratlo? (Round naflo to 0 dean-Ha! places, e.g. 25%.) Contribution margin ratio 35 '56 What is the company‘s break-even point In units and in dollars for this product? Break-even point in units | 464300' units Break-even point in dollars $| 1952150' What is the margin of safety, both in dollars and as a ratlo? (Round ratio to 0 decimai places, e.g. 25%.) Margin of safety In dollars $l 9?1D4IJ| Margin of safety ratlo l 33.21l % If management wanted to increase Its income from this product by 10%, how many additional units would have to be mid to reach this income level? Waterways would have to sell an additional 23120 units
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