Mini case #1 – Baska Ltd.
Baska Ltd. Produces a lens used for webcams. Summary data from its year 2013 income statement are as follows:
Revenues | $8,000,000 |
Variable costs | 4,320,000 |
Fixed costs | 3,900,000 |
Operating Income | $(220,000) |
The president of Baska, Rob Keen, is very concerned about the company’s operations. He has discussed the situation with Operations Manager, Don Bell, and controller, Clair Watson.
After two weeks, Don returns with a proposal. After researching various
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