Answer1) I) Annual Fixed Cost would manufacture Rent, Administrative Cost,Office Supplies, Electricity, Misc Expenses, Entire Personnel Cost Expenses, Salary Drawn by Radi and Interest to Bank

ii) Variable Cost would be FlyAsh, Gypsum, Lime, Sand, Electricity and Direct Labor cost

iii) Initial Investment would construct Modification Cost, Water Supply Management Cost, Machineries, Trucks and Payload Machineries.

Answer2) Break Even Point (in Units) = Fixed Cost/Contribution per unit

Annual Fixed Cost = [(Routine Expenses every Month) x 12] + [(Personnel Expenses per Month)] x 12 + (Salary Drawn by Radi p.m. x 12) + (Interest on Loan)

Annual Fixed Cost = (95,000 x 12) + (1,60,000 x 12) + (50,000 x 12) + (40,00,000 x 12/100)

Annual Fixed Cost = 11,40,000 + 19,20,000 + 6,00,000 + 4,80,000

Annual Fixed Cost = 41,40,000

Commitment per Unit = Selling Price per Unit - Variable Cost per Unit

Commitment per Unit = (Dh 7000/1000 Bricks) - (Expenses identified with Volume of Production/No of Units)

Commitment per Unit = (Dh 7000/1000 Bricks) - (Dh 9,00,000/200000 Units)

Commitment per Unit = Dh 7 - Dh 4.5

Commitment per Unit = Dh 2.5 per Unit

Make back the initial investment Point = 41,40,000/2.5 = 16,56,000 Units

Answer3) Targeted Income = Dh 20,00,000

Commitment Required to Earn Dh 20,00,000 Income = Targeted Income + Fixed Cost

Commitment Required = 20,00,000+41,40,000 = 61,40,000

Commitment per Unit = Dh 2.5

Quantity Required to Earn 20,00,000 Targeted Income = 61,40,000/2.5 = 24,56,000 Unit

question How do volumes affect the return on equity?

Question

What advice can be given to the owners?

Assignment Launch Meeting Launch Meeting - x a Amazon High Volux a Contact US C Answer 1) 1) Annua X C Question 1: Analyz X + c chegg.com/homework-help/questions and answers/question-1-analyze-various-expenses-fixed-cost-variable-cost-initial-investment-question-2-955319296 : Apps YouTube Maps M Gmail = Chegg Study Textbook Solutions Expert Q&A Practice Continue to post Fly Ash Case In April 2013, Radi AlShamsi had a business plan. For quite some time, he had been doing some market research exploring the potential of his "dream project" - establishing a fly ash brick manufacturing unit in India and had seen huge potential for profit in the project. His long-time friend Ali Jabr was also interested but had a few doubts regarding the feasibility of the project. Radi, on the other hand, was sure of his plan. Years of work in the construction industry had shown him the potential of using large volume of fly ash bricks in construction, especially in housing and in infrastructure projects. 15 questions remaining On the basis of preliminary analysis, he decided to set up a plant that would have the capacity to manufacturing four million bricks per year. Though actual production would depend on market demand, the partners estimated that 2.4 million bricks could be sold per year at an average price of 7000 Dh per 1000 bricks. He wanted to ascertain the feasibility of the project using a cost-volume-profit (CVP) analysis. Snap a photo from your phone to post a question We'll send you a one-time download link 888-888-8888 Text me Background: Fly Ash was a residual obtained after combustion of coal. A huge quantity of coal is utilized to produce thermal power, the major power generation source. When crushed coal is burned to generate heat, the residual product contained 80% fly ash. The fly ash from the exits flue gas was collected at various stages of the flue gas path and at the dust collector fitted before the final chimney. Market trends revealed that coal would be continue to be used as the prime fuel for many more years, resulting in a great amount of fly ash generation. By providing your phone number, you agree to receive a one-time automated text message with a link to get the app. Standard messaging rates may apply. My Textbook Solutions Solutions Solutions Fly ash as a construction material was considered appropriate on two accounts. First, there were environmental concerns about the traditional way of making bricks from clay that comprise topsoil. Removing this top layer makes the land infertile for a long period. Using fly ash for making bricks instead of clay would thus help preserve the fertility of the soil. Second, it was estimated that there would be a substantial shortfall in the availability of different types of building materials, including bricks. The government was keen on promoting fly ash bricks in the construction sector. This would enable a waste product to be used in as a construction material and also conserve the environment and resources. Manufacturing process: Government authorities had developed technology to replace burnt clay bricks with fly ash as a construction material for building walls. The manufacturing process for those bricks, known as fly ash-lime-gypsum, required intimate mixing of fly ash, sand, added to make a fine blend. The ratio of the input material was as follow: Solutions ECON by Chegg by Chega by Chega Accounting: What the Econ 4th Edition Economics 11th Edition Type here to search I ENG 10:02 AM 2021-02-24 Assignment Launch Meeting Launch Meeting - x a Amazon High Volux a Contact US C Answer 1) 1) Annua X C Question 1: Analyz X + c chegg.com/homework-help/questions and answers/question-1-analyze-various-expenses-fixed-cost-variable-cost-initial-investment-question-2-955319296 : Apps YouTube Maps M Gmail = Chegg Study Textbook Solutions Expert Q&A Practice Continue to post Fly Ash Case In April 2013, Radi AlShamsi had a business plan. For quite some time, he had been doing some market research exploring the potential of his "dream project" - establishing a fly ash brick manufacturing unit in India and had seen huge potential for profit in the project. His long-time friend Ali Jabr was also interested but had a few doubts regarding the feasibility of the project. Radi, on the other hand, was sure of his plan. Years of work in the construction industry had shown him the potential of using large volume of fly ash bricks in construction, especially in housing and in infrastructure projects. 15 questions remaining On the basis of preliminary analysis, he decided to set up a plant that would have the capacity to manufacturing four million bricks per year. Though actual production would depend on market demand, the partners estimated that 2.4 million bricks could be sold per year at an average price of 7000 Dh per 1000 bricks. He wanted to ascertain the feasibility of the project using a cost-volume-profit (CVP) analysis. Snap a photo from your phone to post a question We'll send you a one-time download link 888-888-8888 Text me Background: Fly Ash was a residual obtained after combustion of coal. A huge quantity of coal is utilized to produce thermal power, the major power generation source. When crushed coal is burned to generate heat, the residual product contained 80% fly ash. The fly ash from the exits flue gas was collected at various stages of the flue gas path and at the dust collector fitted before the final chimney. Market trends revealed that coal would be continue to be used as the prime fuel for many more years, resulting in a great amount of fly ash generation. By providing your phone number, you agree to receive a one-time automated text message with a link to get the app. Standard messaging rates may apply. My Textbook Solutions Solutions Solutions Fly ash as a construction material was considered appropriate on two accounts. First, there were environmental concerns about the traditional way of making bricks from clay that comprise topsoil. Removing this top layer makes the land infertile for a long period. Using fly ash for making bricks instead of clay would thus help preserve the fertility of the soil. Second, it was estimated that there would be a substantial shortfall in the availability of different types of building materials, including bricks. The government was keen on promoting fly ash bricks in the construction sector. This would enable a waste product to be used in as a construction material and also conserve the environment and resources. Manufacturing process: Government authorities had developed technology to replace burnt clay bricks with fly ash as a construction material for building walls. The manufacturing process for those bricks, known as fly ash-lime-gypsum, required intimate mixing of fly ash, sand, added to make a fine blend. The ratio of the input material was as follow: Solutions ECON by Chegg by Chega by Chega Accounting: What the Econ 4th Edition Economics 11th Edition Type here to search I ENG 10:02 AM 2021-02-24