Description
Hello. I was hoping that you would be able to assist me with my individual assignment. I have attached the assignment instructions and requirements as well as the chapters. Thank you
Unformatted Attachment Preview
Explanation & Answer
Hey bff,I have posted the answers, kindly confirm and contact me if you have any questions, thank you
Surname 1
Students' Name
Professor
Course
Due date
Memo;
From:
To: Bargain Shoe Store Manager
Date: 10/2/2017
Subject: Cost-Volume-Profit Analysis
Item
Currently
After Mary’s
Change
Proposal
+ve
-ve
Fixed Costs
$270,000
$294,000
$24,000 (8.89%)
-
Price
$40
$38
-
$2 (5%)
Sales
$20,000
$24,000
$4,000(20%)
-
Surname 2
Variable
$24
$24
-
-
Costs
The purpose of this memo is to evaluate the proposals by Mary Willis who is the
Advertising Manager for the Bargain Shoe Stores. Mary proposed that the enterprise should
enlarge the space for display and install new lighting system. According to her suggestions, the
company will experience changes in fixed costs which are expected to rise by $24,000 which is
equivalent to 8.89%. She also suggested that the company should reduce the prices of goods from
$40 to $38 and argued that this reduction in price would lead to a rise in the volume of sales by
20%, that is, from $20,000 to $24,000. However, the variable costs would remai...