Market Structures, Break-Even, and Cost Management" Please respond to at leas two of the following: • From past Katrina Candies scenarios, determine what their appropriate market structure is. Cite at least four (4) defining characteristics that have helped you reach this decision regarding the appropriateness of the chosen structure.
OR • After watching this week's scenario for Katrina’s Candies (KC), assume they currently face monthly fixed costs of $90,0000. If a box of KC sugar-free chocolate sells for $12.00 and the per unit variable cost is $7.00, how many boxes of candy does KC need to sell in order to break-even? What dollar value of sales do they need to break even? Now suppose KC is considering buying a new machine that will add an additional $8,000 to their monthly fixed costs but will reduce their per unit variable costs to $6.00. Should they buy this new machine? Explain
AND • Imagine that you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby. The community is unaware of the accident. Compare the primary costs involved in cleaning up the water immediately (and thus confessing) versus hiding your culpability now and possibly paying more in the future. Predict the impact on profitability in both situations.