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i have got answer question (a) already. please do question b, c and d. this item does not open automatically you can ope signment Questions

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i have got answer question (a) already. please do question b, c and d.
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this item does not open automatically you can ope signment Questions here + 1 of 11 Automatic Zoom Question 1: Cost function; breakeven; targeted profit; uncertainties and bias; interpretation Joe Davies is thinking about starting a company to produce carved wooden clocks. He loves making the clocks. He sees it as an opportunity to be his own boss, making a living doing what he likes best Joe paid $300 for the plans for the first clock, and he has already purchased new equipment costing $2000 to manufacture the clocks. He estimates that it will cost $30 in materials (wood, clock mechanism, etc.) to make each clock. If he decides to build clocks full time, he will need to rent office and manufacturing space, which he thinks would cost $2500 per month for rent plus another $300 per month for various utility bills. Joe would perform all of the manufacturing and run the office, and he would like to pay himself a salary of $3000 per month so that he would have enough money to live on. Because he does not want to take time away from manufacturing to sell the clocks, he plans to hire two salespeople at a base salary of $1000 each per month plus a commission of S7 per clock. Joe plans to sell each clock for $225. He believes that he can produce and sell 300 clocks in December for Christmas, but he is not sure what the sales will be during the rest of the year. However, he is fairly sure that the clocks will be popular because he has been selling similar items as a sideline for several years. Overall, he is confident that he can pay all of his business costs, pay himself the monthly salary of S3000, and earn at least $4000 more than that per month. (Ignore income taxes.) ype here to search Group Assement Questions nt Questions here 100% (b) Identify uncertainties about the CVP calculations: (1) Explain why Joe cannot know for sure whether his actual costs will be the same dollar amounts that he estimated. In your explanation, identify as many uncertainties as you can. (Hint: For each of the costs Joe identified, think about reasons why the actual cost might be different than the amount he estimated.) (11) Identify possible costs for Joe's business that he has not identified. MAF 200116- Session 2, 2020 Group assignment Page 1 of 11 List as many additional types of cost as you can Explain why Joe cannot know for sure how many clocks he will sell each year. In your explanation, identify as many uncertainties as you can. Discuss whether Joe is likely to be based in his revenue and cost estimates. Explain how uncertainties and Joe's potential biases might affect interpretation of the breakeven analysis results. (c) (d) w] Solution : Part Types of Costi Class ration Already bought equipment 2,000 Not ovat Sukcest 13 30 Rebeco Tebe ne Rent per month S2.900 sant and cost and my month Unility Mills 300 Relant Pred.com Read month Salary per month 83.000 Relevant Podcout Randveeth Salespeople per month 2.000 Reirant Piced cost essed as month Commission to repos Selling price 225 Related Part I: Contribution pruit Selling price per unit 15 Lesser Nach Materiale Compu Contribution p.. Centrinution margin ratio - Contribution Sale 100 -1568225x100 Partiest Function CX-FX) V) Relevant and cost Relevant Variable cost CX) - 578003TX Break even point: Units - Fixed cost Contribution pou - $7800 $188 - 42 units (rounded off) Break even point in value i - Break even point x Selling price p. - 42 x $225 $9.450 "Note: If the formula Break even point divided by contribution margin ratio is used the value will be $9.335. The difference is due to rounding off. Partiv : Annual sales to earn $4000 profit Units - [Fixed cost + Desired return) + Contribution pu - [ $7,800+ $4.000] +$ 188 - 63 units (rounded off Note : As per Chegg policy, only 4 parts of a question can be solved in a query, please post the rest of the parts in a new query

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