Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A new company estimates its typical year as follows. The quantity shipped to the customer is 27000 units at a price of 200 /unit. The

A new company estimates its typical year as follows. The quantity shipped to the customer is 27000 units at a price of 200 /unit. The gross profit percentage is 50 % and the yearly fixed costs are 2100000 . Changing the fixed costs requires a savings plan that takes at least two years. However, we know that the personnel expenses are half of the total fixed costs and that because of legislation and personnel structure these costs can be reduced already in one year.

  1. Calculate the variable cost per unit [/unit] in a three-year perspective.
  2. Calculate the variable cost per unit [/unit] in a one-year perspective.
  3. Calculate the variable cost per unit [/unit] at the current situation for products that are going to be produced (not those that are already finished goods for sale).
  4. Calculate the EBITDA (earnings before interests, taxes, depreciations and amortizations) of a typical year. Give your answer to the nearest thousand euros [k].
  5. Find the sales corresponding to the breakeven point [units] in the current situation.
  6. If the sales price is 10 % less than in the initial estimate, but the other estimates remain as they are, what is the gross profit percentage? Submit your answer without a %-symbol (i.e. if your answer is 0.124 = 12.4 %, submit 12.4).
  7. If the sales price is 10 % less than in the initial estimate, but the other estimates remain as they are, what is the EBITDA? Give your answer to the nearest thousand euros [k].
  8. If all other costs remain as initially estimated, but an extra 90000 is decided to use for marketing, how many more units must be sold so that the investment is reasonable (i.e. the operating income remains unchanged)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Describe the ethical issues involved in conducting HRD evaluation

Answered: 1 week ago