Can you explain to me why Q13 is 1,621,250 and Q14 is 5,301,750. Thank you.
Q13) Given the information for Freeport Inc., what is the total dollar amount of profit attributed to market factors? a) $1,621,250 b) $6,595,000 c) $6,595,000 d) $11,797,500 e) $5,898,750 Question 14 Q14) Given the information for Freeport Inc., what is the total dollar amount of profit attributed to differentiated strategy? a) $5,978,250 b) $5,301,750 d) $11,280,000 e) $5,301,750 Freeport Inc. manutactures high end sailboats that caters to clients who are interested in buying a product of exceptional quatity with distinguished design and leatures. The following information shows the financial data avallable for this year and the previous yoat: Last year marked conditions had several trends: 1) Overail volume of soiboats sold on the market reduced by 3% last year. Any volume of sales that Freeport inc. experienced above or below the average J\% deciine was a product of their eltort and strategy. 2) Sate prices for this type of gallboat typically increased by an average of 4% across the industry. However, Freeport introduced a new technology inte their rudder and keel system that enabled them to significantiy increase the sale price of their sailboats beyond the market average. Direct materials bohave as a variable cost. Comversion cost and seiling/service costs are fored in behavior. Strategic Profitability Analysis - Freeport Inc. Freeport inc, manulactures high end satbooats that caters to clients who are interested in buying a product of exceptional quality with distinguished design and features. The following information shows the financial data available for this year and the previous year: Year 1 Year? Units produced and sold Selling price Direct materials (kilograms) Direct materials costs per kilogram Manulacturing copacity for (in units) Total manufacturing conversion fixed costs Manufacturing conversion costs per unit of capacity Seling and service capacity fixed cost (f of customers) Total seling and service costs Cost per customer of selling \& service capacity 500$400,000750,000$4,5062,500$400,000$6.40400$320,000$800470$440,000770,000$4,4062,500$450,000$7.20440$462,000$1,050 Last year market conditions had several trends: 1) Overall volume of saiboats sold on the market reduced by 3% last year. Any volume of sales that Freeport inc. axperionced above or beion the avenage 3N decline was a product of their elfiort and stratogy. 2) Sale prices for this type of sailboat typically increased by an average of 4% across the industry. Howevec. Froepert introduced a now technology into their rudder and keot system that enabled them to significantly increase the sale price of their saliboats beyond the market averago. Durect materials behave as a variable cost. Conversion costs and sellingiservice costs are fixed in behavior. Please answer the following multiple-choice question by using the table below as a relerence
