Option #1: Cost of Operation Exercise;Toy Box, Inc., is contemplating expanding sales of their children?s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each.;Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each.;Instructions;In a well-written paper, answer the questions and perform the calculations described below;To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document.;Assume that the venture is undertaken and an order is placed for 100 X toys. What would be Toy Box?s break-even point in units and in sales dollars? Show computations completely in an inserted table, and explain the reasoning behind your answer. You can ignore the fixed cost of $600 for this part.;Your paper must be written in Word and should meet the following requirements;2-3 pages in length, with all calculations in tables inserted in the document.;Written and formatted according to the;Include at least 2-3 outside sources.
Paper#74590 | Written in 18-Jul-2015Price : $22