Golden Star Winery Case

Question # 00001775 Posted By: expert-mustang Updated on: 09/29/2013 07:22 AM Due on: 09/29/2013
Subject Economics Topic Macroeconomics Tutorials:
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Golden Star Winery Case

Using Excel, prepare a graph showing the breakeven point and any profit or loss at the current price of $7. Explain to the Golden Star management the implications of this analysis.

Let us separate out fixed and variable expenses first.

Fixed Expenses
Fixed Manufacturing expenses$45,000
Advertising$10,000
Fixed adminsitrative/selling expenses$15,000
Total

$70,000

Variable Expenses
Materials$180,000
Labor$225,000
Delivery$30,000
Commissions$50,000
Travel$5,000
Total$490,000
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