In addition, a well-formatted memo (1-2 pages) to management is required to support your experience with the case study.
I need assistance writing the memo to management regarding which product to choose and why, thank you!
1 Question 1: 2 3 4 Year 5 Sales units 6 Selling price per unit 7 Variable expenses per unit 8 Contriubtion margin per unit 9 Total contribution margin 10 Advertising expense 11 Other Fixed expense 12 Depreciation Expense 13 Other Fixed cost less depreciation 14 Total cash fixed costs 15 Net cash inflow $ $ $ $ $ $ $ $ $ $ Matheson Electronics Computation of Net Cash Inflow 1 2 3 4 5 6 9,000 $ 15,000 $ 18,000 $ 22,000 $ 22,000 $ 22,000 35 $ 35 $ 35 $ 35 $ 35 $ 35 15 $ 15 $ 15 $ 15 $ 15 $ 15 20 $ 20 $ 20 $ 20 $ 20 $ 20 180,000 $ 300,000 $ 360,000 $ 440,000 $ 440,000 $ 440,000 180,000 $ 180,000 $ 150,000 $ 120,000 $ 120,000 $ 120,000 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 50,000 $ 50,000 $ 50,000 $ 50,000 $50,000 $ 50,000 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 265,000 $ 265,000 $ 235,000 $ 205,000 $ 205,000 $ 205,000 (85,000) $ 35,000 $ 125,000 $ 235,000 $ 235,000 $ 235,000 16 17 18 Question 2: 19 Year 0 20 21 22 23 24 25 26 27 1 2 3 4 5 Matheson Electronics Computation of Net Present Value Net Cashflow PVIF $ (375,000) 1.0000 $ (85,000) 0.8772 $ 35,000 0.7695 125,000 0.6750 235,000 0.5921 $ 235,000 0.5194 $ 310,000 0.4556 PV of Cashflow $ (375,000.00) $ (74,561.40) $ 26,931.36 $ 84,371.44 $ 139,138.87 $ 122,051.64 $ 141,231.83 $ 64,163.73 28 6 29 Net cash inflow 1 Question 1: 2 3 4 Year 5 Sales units 6 Selling price per unit 7 Variable expenses per unit 8 Contriubtion margin per unit 9 Total contribution margin 10 Advertising expense 11 Other Fixed expense 12 Depreciation Expense 13 Other Fixed cost less depreciation 14 Total cash fixed costs 15 Net cash inflow $ $ $ $ $ $ $ $ $ $ Matheson Electronics Computation of Net Cash Inflow 1 2 3 4 5 6 9,000 $ 15,000 $ 18,000 $ 22,000 $ 22,000 $ 22,000 35 $ 35 $ 35 $ 35 $ 35 $ 35 15 $ 15 $ 15 $ 15 $ 15 $ 15 20 $ 20 $ 20 $ 20 $ 20 $ 20 180,000 $ 300,000 $ 360,000 $ 440,000 $ 440,000 $ 440,000 180,000 $ 180,000 $ 150,000 $ 120,000 $ 120,000 $ 120,000 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 50,000 $ 50,000 $ 50,000 $ 50,000 $50,000 $ 50,000 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 265,000 $ 265,000 $ 235,000 $ 205,000 $ 205,000 $ 205,000 (85,000) $ 35,000 $ 125,000 $ 235,000 $ 235,000 $ 235,000 16 17 18 Question 2: 19 Year 0 20 21 22 23 24 25 26 27 1 2 3 4 5 Matheson Electronics Computation of Net Present Value Net Cashflow PVIF $ (375,000) 1.0000 $ (85,000) 0.8772 $ 35,000 0.7695 125,000 0.6750 235,000 0.5921 $ 235,000 0.5194 $ 310,000 0.4556 PV of Cashflow $ (375,000.00) $ (74,561.40) $ 26,931.36 $ 84,371.44 $ 139,138.87 $ 122,051.64 $ 141,231.83 $ 64,163.73 28 6 29 Net cash inflow
