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Find the break-even point. Can Nipponply achieve the break-even point with a 65% level of capacity utilization? Why or why not? (all the values are
Find the break-even point. Can Nipponply achieve the break-even point with a 65% level of capacity utilization? Why or why not? (all the values are attached)
EXHIBIT 3: EXPENSES RELATED TO THE VOLUME OF SALES PER MONTH (FOR 3,750 UNITS) Particulars Amount (*) 6,682,500 Manufacturing cost Advertising expense 165,000 Promotional expense 82,500 Electricity expense 82,500 Total expenses 7,012,500 Source: Created by the case author based on company documents. EXHIBIT 4: ESTIMATED INVESTMENT Particulars Information technology infrastructure Amount (*) 1,575,000 Plant and machinery 1,250,000 Building 26,100,000 Other miscellaneous assets (i.e., inventory) 200,000 29,125,000 Total investment Source: Created by the case author based on company documents. EXHIBIT 5: ROUTINE EXPENSES PER MONTH Particulars Amount () Administrative costs 20,000 Office supplies 5,000 Electricity 40,000 Miscellaneous 5,000 Total monthly expenses 70,000 Source: Created by the case author based on company documents. EXHIBIT 6: PERSONNEL COSTS PER MONTH Employee Designation Number of Employees Amount () Regional sales managers 3 1,080,000 Business development managers 3 720,000 Sales executives 6 864,000 Office assistants 3 288,000 Total monthly personnel costs 2,952,000 Source: Created by the case author based on company documents. EXHIBIT 7: CAPITAL STRUCTURE Source Amount () Equity 21,915,000 Debt (bank loan) 8,050,000 29,965,000 Total capital Source: Created by the case author based on company documents.
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