factory expense $10.250.000

production manager salaries $8.500.000

insurance expense $6.000.000

equipment (straight-line) depreciation expense $5.350.000

advertising expense $5.000.000

battery $10

camera $45

internal components $90

receiver $35

screen $95

speaker $25

iphone sales price per unit $750

Tableau DA 18-1: Quick Study, Contribution margin and break-even LO A1, P2 Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to ald our analysis of this model. Total Fixed Costs Factory rent expense Insurance expense Equipment depreciation expense Production manager salaries Advertising expense Variable Costs Per Unit Internal Components Battery Camera Receiver Screen Speaker Sales Price Per Unit IPhone 1. Compute break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units 2. Compute the units of product that must be sold to earn pretax income of $9,000,000. Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target 3. Compute the dolar value of sales (revenue) that must be sold to earn pretax income of $9,000,000. Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars Required 1 Required 2A Required 2B Required 3A Required 3B If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. Margin of Safety (a) Dollars (b) Percent LUPICI 15 USLODY Required 1 Required 2A Required 2B Required 3A Required 3B Apple anticipates it will sell 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute net income if Apple does not purchase the machine. Does not purchase the new machine Sales Variable costs Contribution margin Fixed costs Net income Required 1 Required 2A Required 2B Required 3A Required 3B Apple anticipates it will sell 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute net income if Apple does purchase the machine. Does purchase the new machine Sales Variable costs Contribution margin Fixed costs Net income Required 1 Required 2A Required 2B Required 3A Required 3B Apple anticipates it will sell 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute net income if Apple does not increase advertising expenses. Does not increase advertising expenses Sales Variable costs Contribution margin Fixed costs Net income Required 1 Required 2A Required 2B Required 3A Required 3B Apple anticipates it will sell 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute net income if Apple does increase advertising expenses. Does increase advertising expenses Salos Variable costs Contribution margin Fixed costs Net income