Solution-Determine the type of volume hurdle

Determine the type of volume hurdle

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Question 1 - A firm currently sells 1200 units of sardines in a month. As part of their new product line campaign, they are planning to offer a 15% discount on all their items. Contribution Margin is 60% per can. Based on the given facts:

What will be the percentage of volume hurdle?

How much would they need to sell to break even?

At what volume point would they start earning upon launching the discount?

Question 2 - Imat is taking an aggressive approach on pricing their digital agency services. From a current average of 50 projects in a month where each of which have a contribution margin of 60%. They intend to increase their service prices by 20%, as agreed upon by the Partners of the business.

Determine the type of volume hurdle.

Determine the percentage of volume hurdle?

Determine the number of projects they would need to close to break-even.

Reference no: EM132863431

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Determine the type of volume hurdle

Reference no: EM132863431

Reference no: EM132863431

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