Golden Star Winery Case

Golden Star Winery Case

Golden Star Winery Case, 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

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