Factory Rent Expense: $10,250,000
Insurance Expense: $6,000,000
Equipment Depreciation Expense: $5,350,000
Production Manager Salaries: $8,500,000
Advertising Expense: $5,000,000
Battery: $10
Camera: $45
Internal Components: $90
Receiver: $35
Screen: $95
Speaker: $25
Sales Price Per Unit: $750
Check my 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 explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn profit. The Tableau Dashboard is provided to aid our analysis of this model. Total Fixed Costs Factory rent expense Insurance expense Equipment depreciation expense Production manager salaries Advertising expense 23 of 27 !!! s Prey Next > Variable Costs Per Unit Internal Components Receiver Battery Camera Screen Screen Speaker Sales Price Per Unit iPhone 3 Answer the requirements for each of the following separate situations 1. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. 20). 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. 2(b), Apple anticipates it will sell 100,000 units in the coming year. It is considering Investing in a machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 3(a). Appia 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 expensel 3(b). Apple anticipates it will sell 100,000 units in the coming year. A marketing executive believes that increasing advertising costs b $4,000,000 will increase Apple's sales volume to 110,000 units. Compute net income if Apple does increase advertising expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 38 Required 3A If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. (a) (b) Margin of Safety Dollars Percent Required 2A > 31a). 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. 3(b). 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 38 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 30,000,000 Contribution margin (30,000,000) Fixed costs 35,100,000 Net income $ (65,100,000) Required 28 Required 1 Check my work machine. 3(a). 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 3(b). 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 Complete this question by entering your answers in the tabs below. 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 26,000,000 Contribution margin (26,000,000) Fixed costs 42,600,000 Net income (68,600,000) Required 3A >
