Fredetle Furniture Manufacturing (FFM) has been manufacturing furniture for the home for over 30 years. George Fearless, the owner, has decided he would like to manufacture an active desk that contains space for not only a splop dock but also an MP3 player dock Based on this experience with furniture, he beleves the desk will be a popular item for four years, and then will be obsolete because technology will have changed again. FFM expects the design phase to be very short, maybe four months. There is no R&D cost because the idea came from George, without any real research. Also, fed production costs will not be high because FFM has e capacity in the factory. The FFM accountants have developed the following budget for the new executive desk Cick to view the budget) Begumes Data Table calculating the total profe FFM Requirement 1. Using the assumption given for this requirement, FFM prioes the make mer operating us with parents or mon) Projected Life Cycle Statement of Comprehensive Income Raven Various Fixed Variable Design costs 5 700.000 Months 5-36 Production 5 7,000 $220 pre deos Marketing 3,000 Destibution 2.100 $25 per des Months 37-62 Production $ 7.000 $220 per des Marketing 300 Distribution 1.800 33 par de The design cost is for the total period of four months. The feed costs of production marketing, and to the expected costs per month nortme value of money Diction Canon co Design Produto En ny run the one and then continue to the next question Print Done MacBook so E: 58 $ 4 ( 9 7 2 3 5 6 7 8 O Q W E R T Y U O P 31 A S D F G H J K Th Fredette Furniture Manufacturing (FFM) has been manufacturing furniture for the home for over 30 years. George Fearless, the owner, has decided he would like to manufacture an executive for not only a laptop dock but also an MP3 player dock. Based on his experience with furniture, he believes the desk will be a popular item for four years, and then will be obsolete because technology will have changed again FFM expects the design phase to be very short, maybe four months. There is no R&D cost because the idea came from George, without any real research Also, fixed production costs will no has excess capacity in the factory. The FFM accountants have developed the following budget for the new executive desk Click to view the budget.) Requirements Definition er desk? Begin by calculating Requirement 1. Using the assumptions make. (Enter operating losses with parent Projected Life Cycle Statement of Revenues Variable costs Production 1. Assume FFM expects to make and sell 16,640 units in the first 32 months (months 5-36) of production (520 units per month) and 4,480 units (280 per month) in the last 16 months (months 37-52) of production. If FFM prices the desks at $550 each, how much profit will FFM make in total and on average per desk? 2. Suppose FFM is wrong about the demand for these executive desks, and after the first 3 months stops making them altogether. It sells 16,640 desks for $470 each with the costs described for months 5-36, and then incurs no additional costs and generates no additional revenue. We this have been a profitable venture for FFM? 3. Will your answer to Requirement 2 change if FFM stilt must incur the estimated fixed production costs for the whole period through month 52, even if FFM stop making executive desks at the end of 36 months Distribution Contribution margin Food costs Design Production Print Done Enter any number in the edit folds and then continue to the next question MacBook BO 74 FT $ A 2 4 5 6 & 7 8 9 0