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Holland Alternator manufactures replacement alternators used in high performance automobiles. Financial data for FY2021 is reported below. Treat each of the questions independently of one
Holland Alternator manufactures replacement alternators used in high performance automobiles. Financial data for FY2021 is reported below. Treat each of the questions independently of one another except where noted. Taxes do not need to be considered in your calculations $35.00 per unit $40.00 per unit $70.00 per unit $900,000 annually Data Manufacturing Materials Labor Variable Overhead Fixed Overhead Marketing and Administrative Variable Cost Fixed Costs Sales Price (Average) Normal Volume Maximum Volume Actual Volume in FY2021 $29.00 per unit $500,000 annually $240.00 per unit 18,000 annually 24,000 annually 19.540 annually 09. Determine the contribution margin for a single unit of the product. Q10. Determine Holland's profit for FY2021. Q11. Assuming no changes in costs for FY2022, what would be Holland's profit if they reduced prices by 4% and increased volume by 7% over actual FY2021 volume? Q12. Holland is forecasting annual sales of 20,000 units in FY2022. A foreign automaker has asked Holland to supply 5,000 alternators to be used as an OEM part. The automaker is offering a price of $240 each. Holland does not expect any changes to its cost structure if it supplies the parts. Calculate the change in Holland's profits if it accepts the offer. A positive number should indicate an increase in profits
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