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Hello Can you answer the question (4d) all the answers are correct except this one also can You explain the answer thank you Neptune Company

Hello Can you answer the question (4d) all the answers are correct except this one also can You explain the answer thank you

Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The companys Marketing Department estimates that demand for the new toy will range between 15,000 units and 35,000 units per month. The new toy will sell for $8.00 per unit. Enough capacity exists in the companys plant to produce 20,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $4.00 , and incremental fixed expenses associated with the toy would total $30,000 per month.

Neptune has also identified an outside supplier who could produce the toy for a price of $3.00 per unit plus a fixed fee of $51,000 per month for any production volume up to 20,000 units. For a production volume between 20,001 and 45,000 units the fixed fee would increase to a total of $102,000 per month.

Required:

1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier.

2. How much profit with Neptune earn assuming:

a. It produces and sells 20,000 units.

b. It does not produce any units and instead outsources the production of 20,000 units to the outside supplier and then sells those units to its customers.

3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 20,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 15,000 additional units.

4. Assume that Neptune plans to use all of its production capacity to produce the first 20,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 15,000 additional units.

a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a?

b. What total unit sales would Neptune need to achieve in order to attain a target profit of $52,500 per month?

c. How much profit will Neptune earn if it sells 35,000 units per month?

d. How much profit will Neptune earn if it sells 35,000 units per month and agrees to pay its marketing manager a bonus of 10 cents for each unit sold above the break-even point from requirement 3?

5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 35,000 units?image text in transcribedHere is the another question

The Fashion Shoe Company operates a chain of womens shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary.

The following data pertains to Shop 48 and is typical of the companys many outlets:

Per Pair of Shoes
Selling price $ 40.00
Variable expenses:
Invoice cost $ 15.00
Sales commission 5.00
Total variable expenses $ 20.00

Annual
Fixed expenses:
Advertising $ 47,000
Rent 38,000
Salaries 185,000
Total fixed expenses $ 270,000

Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $40,000 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)

thank you

units 1. Break-even point in unit sales - without hiring 2a. Profit if produces and sells 2b. Profit if outsources production and sells 3. Break-even point in unit sales - hiring 4a. Total unit sales units 7,500 $ 50,000 $ 49,000 20,200 30,200 30,700 $ 74,000 $ 71,040 $ 73,000 units units 4b. Total unit sales to achieve a target Profit of $52,500 4c. Net operating income 4d. Net operating income - bonus to marketing manager 5. Net operating income - fully outsourced

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