750 sales price per unit

variable cost per unit

battery $10, camera $45, internal $90, receiver $35, screen $95, speaker $25

total fixed cost - rent 10,250,000, office salaries 6,000,000, equipment (straight-line) deprecation 5,350,000, sup salaries 8,500,000, property taxes 5,000,000

1) margin of safety A-dollars 16,500,000 B- percent 22%

Answer the requirements for each of the following separate situations. 1. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. 2(a). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine. 2(b). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 3(a). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. 3(b). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. Margin of Safety (a) Dollars 1 (b) Percent % X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine. Does not purchase the new machine Sales $ 75,000,000 Variable costs 26,000,000 X Contribution margin 49,000,000 Fixed costs 35,100,000 Income $ 13,900,000 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. Does purchase the new machine Sales Variable costs Contribution margin 0 Fixed costs Income $ 0 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. Does not increase advertising expenses Sales Variable costs Contribution margin 0 Fixed costs Income $ 0 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses. Does increase advertising expenses Sales Variable costs Contribution margin 0 Fixed costs Income $ 0