Breakeven analysis Molly Jasper and her sister, Caitlin Peters, got into the novelties business… 1 answer below »


Breakeven dissection Molly Jasper and her sister, Caitlin Peters, got into the novelties calling almost by property. Molly, a effectual sculptor, repeatedly made slight figurines as gifts for friends. Occasionally, she and Caitlin would set up a booth at a crafts equitable and dispose-of a few of the figurines along delay jewelry that Caitlin made. Slight by slight, ask-for for the figurines, now named Mollycaits, grew, and the sisters began to propagate some of the favorites in resin, using molds of the originals. The day came when a buyer for a main section place-of-interest proffered them a form to fruit 1,500 figurines of multiform designs for $10,000. Molly and Caitlin realized that it was interval to get down to calling. To bring-about bookkeeping simpler, Molly had valued all of the figurines at $8.00. Shifting liberal requires amounted to an mediocre of $6.00 per part. In command to fruit the command, Molly and Caitlin would own to rupture industrial facilities for a month, which would require them $4,000.

a. Calculate Mollycait’s liberal breakeven object.

b. Calculate Mollycait’s EBIT on the section place-of-interest command.

c. If Molly renegotiates the form at a value of $10.00, what gain the EBIT be?

d. If the place-of-interest refuses to pay past than $8.00 per part but is gaining to perform muchness, what muchness of figurines gain end in an EBIT of $4,000?

e. At this interval, Mollycaits follow in 15 differupture varieties. Whereas the mediocre shifting require per part is $6.00, the explicit require varies from part to part. What warning would you own for Molly and Caitlin delay value to pricing and/or the mass and types of parts that they prproffer for sale?