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8.9 factory rent expense - 10,250,000 insurance expense - 6,000,000 equipment dep expense - 5,350,000 product manager salaries - 8,500,000 adversiting expense - 5,000,000 battery
8.9
factory rent expense - 10,250,000
Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to aid our analysis of this model. Total Fixed Costs Factory rent expense Insurance expense Equipment depreciation expense Production manager salaries Advertising expense Variable Costs Per Unit Internal Components Battery Camera Receiver Screen Speaker Sales Price Per Unit IPhone 1. Compute break-even point in units Choose Numerator: Chooso Denominator: Break-Even Units Break-even units 2. Compute the units of product that must be sold to earn pretax income of $9,000,000 Choose Numerator: Choose Denominator Units to Achieve Target Units to achieve target 3. Compute the dolar value of sales (revenue) that must be sold to earn protax income of $9,000,000. Choose Numerator Choose Denominator: Break-Even Dollars Break even dollars insurance expense - 6,000,000
equipment dep expense - 5,350,000
product manager salaries - 8,500,000
adversiting expense - 5,000,000
battery - 10
camera - 45
internal components - 90
receiver - 35
screen -95
speaker - 25
sales price per unit - 750
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