JFP is losing market share and wants to either advertise or reduce its price. JFP needs to make $25,000 profit to stay in business. It has the following current operations profile:
Volume - 20,000
Price - 13
Variable Costs - 8
Monthly Profit - 35,000
(a) What is the JFP's Fixed Cost?
(b) What is JFP's Contribution Margin?
(c) What is JFP's current Breakeven Point?
(d) What volume does JFP need to sell if it spends $10,000 on advertising and wants to stay in business?
(e) What volume does JFP need to sell if it reduces price by $1 and wants to stay in business?