9 12 11 14 Question 1: Falcon Company manufactures the camera system of a DRONE assembly. Its manufacturing assembly plant is located at the middle east and started its operation in the 10 year 2010. The company exported eighty percent of its production to the American and European drone companies. It has at least three compostos producing the same 10 line of product for drone assembly in China South Korea and India. The CEO Chief Operating Officer of Falcon company is looking forward on its company strategies to cope up with the stiff competition in the market Seting price raw material costs, labor costs, and destrution costs are just some of the items that the CEO are keen of considering for possible financial analysis. He directed his operation manager, purchasing manager, and finance manager for an urgent meeting to discuss the matterThe smooting will be focusing on the strategies to further reduce company's cost of production, and other product related and ovartioad costs. The company estimated monthly 16 costs and monthly sale revenues for this operation are given in Table Q1 All costs are monthly basis except the company taxes. To start with the analysis, the officers determine the following The breakeven point for this situation I'mans 25 (6) Contribution margin 15 marks Using a production range from zero to 10,000 units a month, develop the folowing cost-volume-prolt graphical presentations and explain their significance (a) A breakeven chart 14 marks (b) A profit-volume graph a) Discuss possible strategies of the company to decrease breakeven point contribution margin, and increase profitability without having nisk of losing the market share 5marks 17 18 19 Total 25 marks] Table 1 Table Q1 Unit OMR units or pieces OMR OMR OMR OMR Amount 1,472,400 8,180 52,980 1,216,700 1.650 38,250 OMR 12,340 Items Total Revenue Total Sales quantity Direct Labor Cost Direct Material Cost Other Variable expense Management Salaries Utilities (electricity, water, communications) Advertising Expense (80% Fixed , 20% Variable) Interest Expense Distribution Expense(80% Fixed, 20% Variable) Selling and Commission (90% Fixed and 10% Variable) * Taxes (annual) Note. Total tax annually OMR OMR 147,840 3,480 OMR 42,110 10,430 2.650,320 Questionnaire 9 12 11 14 Question 1: Falcon Company manufactures the camera system of a DRONE assembly. Its manufacturing assembly plant is located at the middle east and started its operation in the 10 year 2010. The company exported eighty percent of its production to the American and European drone companies. It has at least three compostos producing the same 10 line of product for drone assembly in China South Korea and India. The CEO Chief Operating Officer of Falcon company is looking forward on its company strategies to cope up with the stiff competition in the market Seting price raw material costs, labor costs, and destrution costs are just some of the items that the CEO are keen of considering for possible financial analysis. He directed his operation manager, purchasing manager, and finance manager for an urgent meeting to discuss the matterThe smooting will be focusing on the strategies to further reduce company's cost of production, and other product related and ovartioad costs. The company estimated monthly 16 costs and monthly sale revenues for this operation are given in Table Q1 All costs are monthly basis except the company taxes. To start with the analysis, the officers determine the following The breakeven point for this situation I'mans 25 (6) Contribution margin 15 marks Using a production range from zero to 10,000 units a month, develop the folowing cost-volume-prolt graphical presentations and explain their significance (a) A breakeven chart 14 marks (b) A profit-volume graph a) Discuss possible strategies of the company to decrease breakeven point contribution margin, and increase profitability without having nisk of losing the market share 5marks 17 18 19 Total 25 marks] Table 1 Table Q1 Unit OMR units or pieces OMR OMR OMR OMR Amount 1,472,400 8,180 52,980 1,216,700 1.650 38,250 OMR 12,340 Items Total Revenue Total Sales quantity Direct Labor Cost Direct Material Cost Other Variable expense Management Salaries Utilities (electricity, water, communications) Advertising Expense (80% Fixed , 20% Variable) Interest Expense Distribution Expense(80% Fixed, 20% Variable) Selling and Commission (90% Fixed and 10% Variable) * Taxes (annual) Note. Total tax annually OMR OMR 147,840 3,480 OMR 42,110 10,430 2.650,320 Questionnaire