Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A) Below are two independent situations. A. Below are two independent situations. a) Company Max breaks even with sales of $600,000. To generate $1 revenue,
A) Below are two independent situations.
A. Below are two independent situations. a) Company Max breaks even with sales of $600,000. To generate $1 revenue, the company pays $0.75 for the variable costs. [TASK] Determine the profit it will make if it sells $800,000 worth of goods. [3 marks b) Company Wax sales are $600,000 with the selling price of $10 per unit. Fixed costs are $100,000 and profits are $100,000. [TASK] Determine the break-even point for Company Wax. [3 marks] B. Mellon Metal (MM) Industry Ltd has been receiving high demand for its unique metal product MM2020, and this trend is expected to continue consistently for quite an extended period. To cope with the growing demand, Mr Dewey, the production manager, proposed to fully automated mou ng machine. The Senior Management required detail analysis and justification for the purchase because the machine is expensive. Mr Dewey is insistent in his request since he is confident that the new machine will help to cut down some costs, and as a result, the sales of the metal will significantly contribute to the company's profit. Some of the information about the production of the metal product MM2020 are as follow: With the new machine Without the new machine $18 $4,500,000 Contribution per unit Fixed cost before the new machine $45 $18,000,000 [TASK] Assist Mr Dewey by preparing a detailed explanation on how the new machine will contribute to a significant increase in profit from the sales of the MM2020 metalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started