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Homework answers / question archive / 1)A plant has a capacity of 4,100 hand drill per month
1)A plant has a capacity of 4,100 hand drill per month. The fixed cost is $50,000 per month. The variable cost is $166 per drill and the sales price is $328 per drill. What is the Total Revenue (closest) at Breakeven point? At which quantity (closest) will the company incurits Break even? What is the Total costs (closest) at Break even point? .
2)Kopi Kenangan is one of the most popular grab-and-go coffee chains in Indonesia. Asides from offering coffee at a much affordable price, they're also known for using technology for handling orders. Although they have smaller stores compared to common coffee shops, they've been growing rapidly for the past few years. Currently, they're going to enter the international market in 2021 by expanding to Malaysia, Philippines, and Thailand with their latest funding. They're also planning to open cloud kitchen, no-staff stores, and automatic kiosks. 1. In entering the international market, how should their new strategy be? Explain it with the theory of Marketing Mix! 2. According to VentureCap, Kopi Kenangan is now valued for 500 million USD. However, there is a theory of Value for Society where business can contribute to society and the planet in a good way. If you're one of Kopi Kenangan Manager, what kind of Corporate Responsibility would you make? Try to create one! (This idea has to be new, not the ones that they already have).
1)
We know that breakeven point occurs when :-
Total Revenue = Total Cost
Now,
Let the quantity of drill sold be = q
So,
Total Revenue = Sales Price per drill * q
= $328 * q
Total Cost = Fixed Cost + (Variable Cost per drill * q)
= $50,000 + ($166 * q)
?????Now, Using the condition for breakeven point :-
$328*q = $50,000 + ($166*q)
$328*q - $166*q = $50,000
$162*q = $50,000
q = 50,000 ÷ 162
q = 308.64
q = 309 units.
So, Breakeven Quantity = 309 hand drills
Now, At Breakeven Quantity
Total Revenue = $328 * 309
= $101,352
Total Cost = $50,000 + ($166*309)
= $50,000 + $51,294
= $101,294
Hence,
2)
1. In entering the international market the firm should market their product based on the quick service and how much time is saved by opting for automatic kiosks, by advertising the amount of time people spend waiting for their coffee, and emphasizing how their product is received by the customer in no time. Emphasizing that their product is affordable and highly cost effective. Placing their ready to make products in as many multi channels as possible such as retail, digital so that cost overheads reduce drastically and the company is able to transform via technology. Going for products which are packaged in line with local tastes and preferences and local ambassadors are used to promote the product in the three varied countries.
2. One of the key forms of corporate responsibilities the firm could take are that of environmental by seeking to sell coffee in organically produced cups which are made from byproducts and are a healthy alternative to the single used plastic ones which it has already phased out of. Relying on creating employment opportunities by seeking store representatives, even if some of the stores are automatic so that the firm is able to give locals the opportunities to earn a living. Relying on renewable forms of energy for their stores and recycling their coffee by -products so that waste is recyclable and that the coffee chaff is used in auto and other related sectors. This will help the firm grow as each component will be accountable.
