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Calculate total revenue for the company

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Reference no: EM13882682

Part I. Breakeven analysis : Speciality Chocolate Company One-time Fixed

Cost
Rent of Facility  800,000
Plant Maintenance  300,000
Advertising  400,000
Employees' salary  400,000
Insurance 500,000
Total Fixed Cost 2,400,000


Annual Variable Costs per box sold
Electricity 3,200,000
Cost of Packaging  1,600,000
Cost of Ingredients  2,400,000
Production Labor 800,000
Total Variable Cost 8,000,000

 
Price to Consumer Quantity Sold/Yr $10 1,000,000

Calculate total revenue for the company (Show work)

Calculate the margin for this company. (Write down the equation and solve the problem)

How many units (Chocolate boxes) must this company sell to breakeven? How many years will it take? Show your work.

Does this feel like a good business for your client to be in? Yes, No, or Unclear. Explain your reasoning for what constitutes a "good business."

Your employee tells you that the cost of building the factory for the company has lowered the margin for the product. Does this make sense? Why or why not?

Reference no: EM13882682

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