Question
I NEED HELP ASAP For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and
I NEED HELP ASAP
For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economic model. You are tasked to complete several calculations and present your findings to the company stakeholders. You may use any presentation software (Google Slides, Prezi, PowerPoint, etc.)
1. For your first assignment, management has provided the following revenue and cost information:
High-End Set Economical Set
Sales price $3,500 per unit $1,000 per unit
Labor $875 per unit $250 per unit
Materials $1400 per unit $300 per unit
Direct fixed costs $25,000 per month $16,500 per month
Allocated fixed costs $85,000 per month $85,000 per month
They want a better understanding of their business to make budgeting and sales goals decisions and have asked you to determine their:
Break-even quantities for each product line
Break-even quantities to earn $500,000 per year margin on the high-end line (at the current sales price)
Break-even quantities to earn $300,000 per year margin on the economical line (at the current sales price)
They expect the product lines to fully absorb the costs allocated to them.
Once you have determined these amounts, they have asked that you:
present the information
describe how you performed your calculations
and explain what the results mean
For your first assignment, management has provided the following revenue and cost information:
High-end set economical set
Sales price $3,500 price unit $1,000 Per unit
Labor $875 per unit $250 per unit
materials $1,400 per unit $300 per unit
direct fixed costs $25,000 per month $16,500 per month
allocated fixed cost $85,000 per month $85,000 per month
They want a better understanding of their business to make budgeting and sales goals decisions and have asked you to determine their:For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economic model. You are tasked to complete several calculations and present your findings to the company stakeholders.
Contribution Margins for each product line
Break-even quantities for each product line
Break-even quantities to earn $500,000 per year margin on the high-end line (at the current sales price)
Break-even quantities to earn $300,000 per year margin on the economical line (at the current sales price)
They expect the product lines to fully absorb the costs allocated to them. They have also asked that you show the each step in your calculations so that they can understand your analysis. (Note: you will be graded on your intermediary values.)
Once you have determined these amounts, they have asked that you:
present the information
describe how you performed your calculations
and explain what the results mean
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