What Is Religion?
Autor: austintsuzz • February 16, 2017 • Term Paper • 440 Words (2 Pages) • 782 Views
Due: Monday September 26, 10pm
Question 1:
No—if making Egg McMuffins will not require additional appliances.
The franchisee should determine whether the additional costs generated by manufacturing Egg McMuffins can be covered by the additional revenue.
Additional costs could be:
1. Fixed Cost:
Acquisition of appliances in order to make McMuffin
Cost of marketing or advertising
2. Variable Cost:
Additional cost of Overheads (e.g. additional utilities used such as electricity and water)
Additional Labor cost, including the potential cost of hiring new labor, training labor, and lengthening the working hours
Additional production cost (COGS), including the cost of raw materials and other cost of good sold.
Question 2:
[pic 1]
Calculation
Fixed Cost | Unit Contribution Margin | BEV |
-100 | 1 | 100 |
-100 | 2 | 50 |
-100 | 3 | 33.33333333 |
-100 | 4 | 25 |
-100 | 5 | 20 |
-100 | 6 | 16.66666667 |
-100 | 7 | 14.28571429 |
-100 | 8 | 12.5 |
-100 | 9 | 11.11111111 |
-100 | 10 | 10 |
-100 | 11 | 9.090909091 |
-100 | 12 | 8.333333333 |
-100 | 13 | 7.692307692 |
-100 | 14 | 7.142857143 |
-100 | 15 | 6.666666667 |
-100 | 16 | 6.25 |
-100 | 17 | 5.882352941 |
-100 | 18 | 5.555555556 |
-100 | 19 | 5.263157895 |
-100 | 20 | 5 |
Learnings: an increase in unit contribution will decrease the required break-even volume.
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