Walmart

The company identified is Wal-Mart one of the largest stores in the country . The is involved in the selling of household goods . I have chosen packaging of television sets within the for sell in single units The costs associated with them include rent and rates US 100 ,000 labour is US 2 per hour and one unit requires 16 hrs of two laborers each , managers salary US 20 ,000 , depreciation is US 24 ,000 , cost of materials per unit is US 150 each set requires two unit of materials Assuming the sales revenue

per unit is US 800

At Break-even , the cost of production is equivalent to the sales revenue . In this case the fixed cots will be US 100 ,000 , US 20 ,000 and US 24 ,000 for rent and rates , managers salary and depreciation respectively

a ) When they want to sell at US 329 the break-even will as follows :-

Sales 329X y 25y 112y 4000 12000 20000

36000 192y

Y 188 Guitars

b ) Sales 359X y 25y 112y 4000 12000 20000

36000 222y

Y 188 Guitars

c ) Sales 299X y 25y 112y 4000 12000 20000

36000 162y

Y 222 Guitars

d ) Sales (2000 X329 658 ,000

Rent and taxes (12 ,000

Depreciation ( 4 ,000

Management and control ( 20 ,000

Direct Materials 20000 x 25 ( 50 ,000

Direct Labor (2000 x 8x 14 (224 , 000

PROFIT 310 ,000

Nb : All figures are in US

When they move to Nashville

a ) When they want to sell at US 329 the break-even will as follows :-

Sales 329X y 25y 95 .2y 4000 7200 20000

31200 208 .8y

Y 150 Guitars

b ) When they want to sell at US 359 the break-even will as follows

Sales 359X y 25y 95 .2y 4000 7200 20000

31200 238 .8y

Y 131 Guitars

c ) When they want to sell at US 299 the break-even will as follows

Sales 299X y 25y 112y 4000 12000 20000

31200 178 .8y

Y 175 Guitars

d ) Sales (2000 X329 658 ,000

Rent and taxes ( 7 ,200

Depreciation ( 4 ,000

Management and control ( 20 ,000

Direct Materials 20000 x 25 ( 50 ,000

Direct Labor (2000 x 8x 14 (190 , 400

PROFIT 386 ,400...