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university of california Operations And Supply Chain Management Assignment Help - Accounting

Question - Toy Box Inc. is contemplating expanding their sales of their children%u2019s toys. The have an
opportunity to stock and sell the X toy that has been a big hit with children everywhere. They need to
order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could
resell the X toy in their store for $22 each.

Due to anticipated demand, Toy Box Inc. will need to hire an additional part-time cashier at $600 a
month which will be classified as a fixed-cost attributable to the X toy. Also, they have offered a $1
sales commission per toy to their floor sales representative. They will also include a package of
trading cards with every purchase of an X toy, which will cost them an additional $2 each.

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