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My Collection

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Submitted By chandancrazy
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Exhibit 3 | | | | | | | | | | | |Aggregate |A |B |C | | | | |Sales at full capacity(units) | |2000000 | | | | | | | |Actual Sales Volume (units) | |1500000 |600000 |400000 |500000 | | | | |Unit Sales Price |$ |7.2 |10 |9 |2.4 | | | | |Total Sales Revenue | |10800000 |6000000 |3600000 |1200000 | | | | |Variable cost per unit | |4.5 |7.5 |3.75 |1.5 | | | | |Total Variable cost | |6750000 |4500000 |1500000 |750000 | | | | |Fixed cost | |2970000 | 960,000 | 1,560,000 | 450,000 | | | | |Profit | |1080000 |540000 |540000 |0 | | | | |Ratios: | | | | | | | | | |Variable cost to sales | |0.625 |0.75 |0.42 |0.625 | | | | |Unit Contribution to Sales | |0.375 |0.25 |0.58 |0.375 | | | | |Utilization of Capacity | |0.75 |0.3 |0.2 |0.25 | | | | |Contribution Margin | |2.7 |2.5 |5.25 |0.9 | | | | | | | | | | | | | | | | | | | | | | | | |QUESTION 2 | | | | | | | | | |a) | |Revised Information | | | | | | |
| | |1. Increase in the production capacity of C by 450000 units(Arnie Winetki' comment) to boost sales of 90%(John Cooper's comment) |
| | |2. Doubling the price of C with no change in cost (Arnie winetki's comment) | | |
| | |3. Fixed Cost to be increase by 60,000 per month to achieve increased plant capacity (Fred William's comment) |
|

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