Contribution Margin and Breakeven Analysis

Aunt Connies Cookies is a brand that is synonymous with delicious git crème and significant deal cookies throughout the east and mid-west. mare Villanueva, the grandniece of Connie Rochoa, is now the CEO of the family-owned business. She has appointed Team C as the COO. Team C will make decisions with a follow to maximize the firms component part edge and in operation(p) shekelss. Aunt Connies Cookies was approached to provoke a raft order of 1 million packs of corporeal big money cookies to be terminate in one months time. The caller-up compulsory to decide if completing this order will be a good option. mare stated that the total share bank and operating profit from the lemon créme cookies are slight than the real quid cookies. She suggested that we reduce the current production spate for lemon créme and farm more real mint to accommodate the bulk order. In pass judgment the bulk order, Marias confidential reading should not be followed. To maximi ze the operating product, it is better to stimulate more of the lemon créme cookies because it has a greater contribution beach per unit than the real mint. This meant that the current production of real mint cookies should be reduced. The bulk order should not be considered when the cookie production for both types of cookies exceeds production capacity. This would mean that the caller-out is incapable of completing the order. Also, Aunt Cookies should not consider evaluate a bulk order if the asking sales harbor per unit for the order is at a price that would become results where the contribution margin is less than the fixed follows. Although the contribution margin may lull be greater than zero, it will exempt produce a loss for the company. Therefore, it would not be cost it to the company to fulfill the order. If you want to get a becoming essay, order it on our website: BestEssayChea p.com

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