You received an email from Carl the operations manager from the California
Container division. They produce packaging for cell phones. Carl understands
that his product is an important cash producer for the company.
The delivery price is based on long term contracts.
The price of the supply of cardboard has increased due to a .15 fuel
surcharge added to the cost.
Carl has a fixed monthly cost of $257,000 and delivers 3.3 million packages
in the same time period for a price of $3.24.
The variable cost of the previous package was a $1.37.
Provide the following information to Carl in an email
At what volume was the old break-even and what is the new break-even?
In order to make the same profit how many more packages needs to be
produced?
3 pages
Container division. They produce packaging for cell phones. Carl understands
that his product is an important cash producer for the company.
The delivery price is based on long term contracts.
The price of the supply of cardboard has increased due to a .15 fuel
surcharge added to the cost.
Carl has a fixed monthly cost of $257,000 and delivers 3.3 million packages
in the same time period for a price of $3.24.
The variable cost of the previous package was a $1.37.
Provide the following information to Carl in an email
At what volume was the old break-even and what is the new break-even?
In order to make the same profit how many more packages needs to be
produced?
3 pages
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