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answer all Complete this question by entering your answers in the tabs below. Suppose Mz is unsure of the pricing and costs for the part
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Complete this question by entering your answers in the tabs below. Suppose Mz is unsure of the pricing and costs for the part (other than the costs of the lease under the two payment options), At what annual volume would the operating profit be the same regardless of the fease payment option chosen? Complete this question by entering your answers in the tabs below. Assume an annual volume of 31,500 parts, What is the margin of safety assuming Hoten Round your answers to 1 decimal place. Complete this question by entering your answers in the tabs below. Assume an annual volume of 31,500 parts. What is the operating leverage assuming Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. At what annual volume would the operating profit be the same ragardiess of the royatty option chosen? Maryand Manufacturing 1M2, produces a part using an expensive propnetary machine that can only be leased. The leasing company offers two contracts. The first (unitrate jease) is one where M2 would Dav $20 per unit oroduced regardless of the number of units The second lease option (flat-rate lease) is one where M2 would pay $438.000 annualy, regardless of the number produced The lease wil run one year and the lease option chosen cannot be changed during the lease All other lease terms are the same: M2 selis the part for $206 per unit and unit vartable cost (exclucing any machine lease costs) are $106. Annual fuxed costs (excluding any machine lease costs) are $1,446,000. Required: a. What is the aninual break-even level assuming 1. The unit-rate lease? 2. The flat-rate lease? b. At what annual yolume would the operating profit be the same regardless of the royaly option chiosen? c. Suppose M2 is unsuie of the pricing and costs for the part (other than the costi of the lease under the two payment options), At What annual volume would the operating proft be the same regardiess of the lease payment option chosen? d. Asume an whinal yoline of 31,500 parts What is the operating levecege assuming 1. The unctate lease? 2. The flatrate lease? *. Assume an anoual volume of 31,500 parts. What is the margin of sutetyassumino 1. The una -rate lease? 2 The flat-cate lease? Complete this question ing entering your answers in the tatrs betow. What is the ancust break quen ievel ataining Step by Step Solution
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