SmartSweets is growing-How could overly optimistic sales estimates hurt Tara’s business?

Discussion Board 5

SmartSweets, launched by entrepreneur Tara Bosch as described in the chapter’s opener, makes gummy candy without sugar and from all-natural ingredients.

1. Identify 2 fixed costs that do not change regardless of how much candy Tara’s company sells.

2. SmartSweets is growing. How could overly optimistic sales estimates hurt Tara’s business?

3. Propose 2 ways cost-volume-profit analysis can help Tara manage her company.