Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Greentown Industries sells its transport services at range of prices to five dissimilar customer groups. The company has fixed costs of £150,000 per year. The average variable costs for each transport service, irrespective of the customer group, are £7. The Table below shows the prices charged to each customer group and quantity of transport services which are currently sold at that price.

Customer group

Selling price

Quantity

Multinational

£19

13,000

Corporate

£20

12,500

Small business

£21

12,000

Government

£22

11,000

Private

£23

10,000

a. If average selling price is £21, compute the breakeven point in quantity and money terms and sketch a rough sketch of the cost-volume-profit (CVP) graph which shows the relationships between the elements of the CVP.     

b. Ignoring any market demand or capacity drawbacks, compute the optimum selling price for Greentown Industries and recognize which customer group is most profitable.

Employ the following information to answer part (c) suppose that the maximum market demand for each customer group is 20,000 transport services at same price as currently charged (see Table above).

As well suppose that Greentown's capacity limitation is 60,000 transport services.   

c. Based upon the computation of optimum selling prices in (b) above but with capacity and demand assumptions taken in consideration, compute the maximum profits that Greentown can earn and customer mix and quantity by which that profit can be accomplished.    

Additional Requirements

Level of Detail: Show all work

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M914122

Have any Question? 


Related Questions in Business Management

Cash method versus accrual methodbusinesses face a choice

Cash Method Versus Accrual Method Businesses face a choice between two important methods of calculating taxable income for federal income taxes: the cash method and the accrual method. Based on your readings for the modu ...

1 identify a sheltered industry -one that has been subject

1. Identify a sheltered industry -one that has been subject to little penetration either by imports or foreign direct investment. Explain why the industry has escaped internationalization. Explore whether there are oppor ...

Casein this case assignment consider some key strategies

Case: In this case assignment, consider some key strategies recently implemented by Dish in its effort to succeed and compete in its current competitive environment. Discuss the strategic direction of the company and whe ...

Sometimes in an effort to control project schedule it is

Sometimes, in an effort to control project schedule, it is possible that a project manager may resort to developing a project schedule by starting at the end of a project end date and working back toward the beginning. I ...

Does operation management model refer to

Does operation management model refer to input-transformation-output processes?

Create a word document that includes a network diagram a

Create a Word document that includes a network diagram, a set of configuration listings, a selection of diagnostic and discovery commands, and a short written summary answering the questions listed below. Be sure to veri ...

Jeff owes sam 140 and owes harry 80 jeff declares

Jeff owes Sam $140, and owes Harry $80. Jeff declares bankruptcy, because he has only $100, and the decision of how to divide his $100 between Harry and Sam comes before a court. The court is composed of a three-judge pa ...

Gulf regional legal environment of businesswrite one

Gulf Regional Legal Environment of Business Write one paragraph that specify the key points. What is the content of your Conclusion part? Tasks: Sort out the key points from your gathered data and give a clear summary of ...

Object-orientated analysis and designhow do object-oriented

Object-Orientated Analysis and Design: How do object-oriented analysis and design (OOAD) methodologies compare to the traditional structured analysis and design methodologies covered earlier in the book? Define UML and d ...

Directions based on the learning experience in this course

Directions : Based on the learning experience in this course along with the new marketing knowledge that you have acquired discuss in 400 words how you can use these practices to improve the marketing effectiveness in yo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen