Question
DO NOT JUST ANSWER ONE QUESTION. I NEED THE NARRATIVE ANALYSIS NO GRAPHS. I ALREADY DID THAT. DO NOT COPY FROM THE WEB. Provide a
DO NOT JUST ANSWER ONE QUESTION.
I NEED THE NARRATIVE ANALYSIS NO GRAPHS. I ALREADY DID THAT.
DO NOT COPY FROM THE WEB.
Provide a narrative analysis in Word FOR QUESTION 4-6. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.
Question 4: Based on profit-maximization analysis, what level of output should you recommend to the CEO?
Units | 200 | 250 | 300 | 350 | 400 |
Sales Price | $70,000 | $66,000 | $64,000 | $59,000 | $52,000 |
Variable Cost | $60,000 | $54,000 | $48,000 | $46,000 | $45,000 |
Contribution | $10,000 | $12,000 | $16,000 | $13,000 | $7,000 |
Total Profit | $2,000,000 | $3,000,000 | $4,800,000 | $4,550,000 | $2,800,000 |
Question 5: Using the above information, prepare a budget for May 20X8, stating the total cost. Use a spreadsheet to display your data and calculations.
Apr | May | |||
ProductionUnits of MiniY | 3000 per unit | 3200 per unit | ||
Components cost (variable) | $24,000,000 | 8000 24M/3000 | $25,600,000 | 24M*3200/3000 |
Labor cost (variable) | $13,500,000 | 4500 13.5M/3000 | $14,400,000 | 13.5M*3200/3000 |
Rent (fixed) | $6,000,000 | Fixed | $6,000,000 | |
Depreciation (fixed) | $6,000,000 | Fixed | $6,000,000 | |
Other (fixed) | $2,000,000 | Fixed | $2,000,000 | |
Total | $51,500,000 | $12,500 | $54,000,000 |
Question 6: With the costs that you calculate, what is the profit or loss associated with MiniY? NOTE: Assume that the variable and fixed costs mentioned in Step 5 are also applicable to Step 6 when calculating the profit or loss for MiniY
Joint Cost | MiniY | MiniX | Total |
Sales Unit | 3200 | 3000 | |
Sales Price | $25,000 | $27,100 | |
Sales Value (sales unit*sles price) | $80,000,000 | $81,300,000 | $161,300,000 |
Allocation Rate (sales value/sales value total) | 49.60% | 50.40% | 100% |
Joint Cost | $3,000,000.00 | ||
Relative Sale Value (3,000,000*Allocation Rate) | $1,487,910.73 | $1,512,089.27 | |
Profit/Loss (sales value-Relative Sale Value) | $78,512,089.27 | $79,787,910.73 |
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