We can work on ABBA Corporation

The following information is available for ABBA Corporation for last month:

Sales (10,000 units x $120 per unit) $1,200,000

Variable expense (10,000 units x $80 per unit) $800,000

Contribution margin $400,000

Fixed Expenses $300,000

Operating Income $100,000

The company has no beginning or ending inventories. ABBA’S product is in its growth stage and is positioned as an affordable quality product. Currently, competitor’s prices range from $110-$124 per unit.

Required:

a) Calculate the company’s break-even point in units. (3 marks)

b) The marketing manager believes she can increase sales by 5,000 units by implementing one of these two options:

Option 1: Increasing advertising, a fixed cost, by $50,000, or

Option 2: Decreasing sales price per unit to $115.

Calculate the total operating income under each option above (1) and (2). (4 marks)
Explain which option would you recommend from both a financial and a strategic perspective. (3 marks)

Sample Solution

Sexuality and Infidelity GuidesorSubmit my paper for examination sexThe representation of sexuality in American media assists with framing the recognition that Americans are fixated on sex (Baumeister and Tice, 2007). Sex is a significant demonstration from a physiological and mental point of view. For a few, discussing sex and sexual successes can be an unbalanced discussion. Others promptly look to gloat about their encounters, and even overestimate the quantity of sexual accomplices they had. By and large, I accept that society seems to have a twofold norm. Men can without much of a stretch engage in sexual relations with various ladies and these practices are celebrated. However ladies are not dependent upon comparative standards. I accept the absence of meaning of what establishes sex further adds to male and female separation. For a few, there are three kinds of sex, while others just tally two sorts of sex as pertinent in counting their victories. Promiscuity is another clarification with respect to why men frequently report having a higher number of sexual successes than ladies (Baumeister and Tice, 2007). From one point of view, this clarification bodes well. In any case, I for one think that its hard to accept that this numerous men would take part in sexual contact with other men. American culture breeds receptiveness towards sexuality. Be that as it may, cross-sexuality and homosexuality are frequently less advanced. As a general public, I accept that we still can’t seem to completely acknowledge androgyny and homosexuality enough so as to represent these high quantities of sexual successes guaranteed by men. Betrayal is another significant component of connections that is portrayed by sex (Human Sexuality Reader, n.d.). Connections can be a troublesome procedure as individuals continually develop and change into new stages in their lives. Numerous individuals start dating as young people. Apparently, this might be the most effortless time to have a relationship as cultural desires are less. As individuals develop more established, they are relied upon to deal with different duties. From this point of view, monogamy regularly works best with the grown-up way of life. However, dealing with a relationship is a troublesome procedure and now and again individuals ignore their accomplices. I accept these circumstances frequently lead to disloyalty, as people feel as if they are not getting satisfactory consideration from their accomplice. However numerous individuals change as they develop, and now and again people may find that they are not in a relationship with a similar individual they recently knew. In spite of the fact that I don’t accept that betrayal is an answer for an issue, it occurs. In any case, I accept that there ordinarily are notice signs that the relationship is flopping before the disloyalty happens. In spite of the fact that it might be reasonable for state that a few people are interminable con artists, yet these circumstances are not many. I accept when a relationship falls flat, it is simpler to accuse the other individual than to concede our own flaws. I accept that in some capacity, we as a whole comprehend what we submitted botches that added to the end of the relationship. Be that as it may, conceding these happenings would be like conceding we weren’t right. Despite the fact that conceding one’s own deficiency is a troublesome idea to institute, it appears it is significantly more troublesome in a relationship as individuals become sincerely vested and secure. References Baumeister, Brain and Tice, Melanie. Sizes of Bisexuality. Glorious Press. New York, 2007. Adams, Curtis. Human Sexuality Reader. Chap House Books. Chicago, 2009.>

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