Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need answers for number 2b and number 3 for the question.. I posted the numbers already answered by chegg expert Assignment 2 BUS100 Marketing
I need answers for number 2b and number 3 for the question.. I posted the numbers already answered by chegg expert
Assignment 2 BUS100 Marketing 1a. Separate the following expenses into fixed and variable costs and show the total fixed and variable costs for each category. The business is for an equipment manufacturer that makes only one type of equipment. Your answer should be formatted like this: Fixed Cost Amount Variable Cost Amount Total Total List of Monthly Expenses Expense Monthly $ value Payroll (for permanent fulltime staff e.g. dispatchers) 30,000 Shipping 12,000 Raw materials 7,000 Shop & manufacturing equipment leases 5,100 Insurance 780 Sales tools such as credit card processing fees 650 Business premises lease costs over the contract period 500 Property taxes 490 Startup loan payments 456 Utilities 450 250 Utility usage (electricity, gas, water) that increases due to manufacturing activity Accounting fees 240 125 Equipment breakdown repair (only occurs if a machine breaks during manufacturing use) Pet grooming (2 Bichon Frises dogs, owned by the business owner) 75 1b. Explain what the sale price should be for the equipment that this business sells. Please explain in one sentence why you think this price is a reasonable one. 2a. Calculate the breakeven price for this equipment. Please show all your work. In order to make the answer easier to evaluate, use red font for your fixed cost value and blue font for your variable cost value. Your work must be clearly and neatly shown in the Word document. No handwritten answers will be marked. 2b. Calculate the number of units that must be sold each month to generate $85,000 of profit. Please show all your work.. In order to make the answer easier to evaluate, use red font for your fixed cost value and blue font for your variable cost value. Your work must be clearly and neatly shown in the Word document. No handwritten answers will be marked. 3. Please explain what effect a 10% decrease on variable costs will have on the monthly profit, based on the sale price you selected in question 1b. 1a. The total fixed and variable cost is done with the helo of excel. Variable Fixed cost Amount cost Amount Utilities 450 Shipping 12,000 Raw Payroll 30,000 materials 7.000 Shop and manufacturing equipment leases Credit card processing 5,100 fees utility 780 usage 650 Insurance 250 Property tax 490 Repair 125 Loan payment 456 Accounting fees 250 Total Total fixed variable cost 37,526 cost 20,025 Hence, the total fixed cost is 37,526 and the total variable cost is 20,025. 1b. To avoid a loss, the sale price should cover the entire fixed cost of 37,526. Note: When numerous questions are provided, Chegg requires only one question to be answered. Please resubmit the question to receive the solution, stating the question that needs to be solved. 3 Payrol Shop and Manufacturing Equipment Leases Insurance 5 Z Business Premises lease costs over the contract period Property Taxes Startup loan Payment Utility Accouting Fee 2 2 3 20:59 NM 95 Answer 1 of 1 Variable 30000 Shipping 5100 Raw Material Sale tools such credit card processing 780 fee 12000 7000 650 500 utility Usage 250 125 490 Equipment Break Down 456 450 240 38016 20025Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started