Measure maps Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that...
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Accounting
Measure maps
Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $3,000 and increased costs of about $2,000.
| Sales | $230,000 |
| Cost of goods sold | 150,000 |
| Depreciation expense | 30,000 |
| Other expenses | 20,000 |
If the company has the above budgeted sales and costs for next month (without accounting for any possible shipping errors), determine how many shipping errors the company can afford to have and still break even.
Break-even shipping errors
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