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I am not sure where to start with part A and Can I find the numbers for C with the numbers provided for year 3
I am not sure where to start with part A
and Can I find the numbers for C with the numbers provided for year 3 and 4
A. Cost Structure: Compute the cost structure for each firm. You will need to calculate three variables for both companies: 1. Variable Cost per Dollar of Sales = Change in Cost of Products Sold / Change in Sales: 2. Total Variable Cost = Variable Cost per Dollar of Sales * Sales: 3. Total Fixed Cost = Total Cost of Product Sold - Total Variable Cost: B. Structure of Manufacturing Cost: In one paragraph, compare the structure of manufacturing costs for each firm: C. Projected Financial Information: Compute the projected sales, cost of products sold, gross profit, and gross margin (gross profit as a percentage of each firm for Year +1 through Year +5. Using the table below or a similar spreadsheet is recommended. Year +1 Year +2 Year +3 Year +5 $4,042 $3,887 Year +4 $5,217 $4,554 AK Steel Sales Less Cost of Product Sold: Variable Cost (0.568 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Gross Margin % $155 3.8% $663 12.7% Year +1 Year +2 Year +5 Year +3 $6,266 $5,997 Year +4 $11,377 $9,129 Nucor Sales Less Cost of Product Sold: Variable Cost (0.613 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Gross Margin % $269 4.3% $2,248 19.8%Step by Step Solution
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