Golden Star Winery Case

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Using Excel, prepare a graph showing the breakeven point and any profit or loss at the current price of $7. Explain to the Golden Star management the implications of this analysis.

 

Let us separate out fixed and variable expenses first.

 

Fixed Expenses 
Fixed Manufacturing expenses$45,000
Advertising$10,000
Fixed adminsitrative/selling expenses$15,000
Total

$70,000

 

Variable Expenses 
Materials$180,000
Labor$225,000
Delivery$30,000
Commissions$50,000
Travel$5,000
Total$490,000

 

 

 

 
    • 13 years ago
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