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kindly solve as early as possible plzz Energy Devices, Inc. Energy Devices, Inc. (EDI), purchased energy-saving devices in bulk, repackaged them, and sold them to
kindly solve as early as possible plzz
Energy Devices, Inc. Energy Devices, Inc. (EDI), purchased energy-saving devices in bulk, repackaged them, and sold them to hardware stores in various locales. Its products consisted of shower nuzzles that re- strict the flow of water, thermostats with timers, and storm windows. Management was preparing the budget for the upcoming fiscal year. Preliminary figures, by product, are shown below: Shower Nozzles Thermostats. Storm Windows Total Number of items 800 200 500 1.500 Price per item $10 $80 $10 Total revenue $8,000 $16,000 $50,000 $74.000 Purchase cost per item 70 95 Total purchase costs 6,400 14,000 17.500 67.900 Allocated fixed expenses (includes all labor 27040 6.760 16,200 50.700 Total costs $33,440 $20.760 $64,400 $118.600 Profit (loss) S(25440) $(4.760) $(14.400) S (44,600) Assignment What is breakeven for the year? What concens, if any, do you have about this breakeven figure? Given that its preliminary budget shows a sizable loss, EDI must consider ways to eliminate this loss. What budgetary options should managemeni consider? EDI thinks it can increase the sales of its products by advertising in local newspapers, and has decided to spend 1.000 on advenising To get the most out of its advertising dollar, it has decided to concen- trate on one product only. Given financial concerns only, please discuss how it should decide which product to emphasize? One of the managers of ED! has suggested that, since the company loses so much on shower nozzles, it should discontinde selling them. What advice would you give EDI about this decision? 2. Energy Devices, Inc. Energy Devices, Inc. (EDI), purchased energy-saving devices in bulk, repackaged them, and sold them to hardware stores in various locales. Its products consisted of shower nuzzles that re- strict the flow of water, thermostats with timers, and storm windows. Management was preparing the budget for the upcoming fiscal year. Preliminary figures, by product, are shown below: Shower Nozzles Thermostats. Storm Windows Total Number of items 800 200 500 1.500 Price per item $10 $80 $10 Total revenue $8,000 $16,000 $50,000 $74.000 Purchase cost per item 70 95 Total purchase costs 6,400 14,000 17.500 67.900 Allocated fixed expenses (includes all labor 27040 6.760 16,200 50.700 Total costs $33,440 $20.760 $64,400 $118.600 Profit (loss) S(25440) $(4.760) $(14.400) S (44,600) Assignment What is breakeven for the year? What concens, if any, do you have about this breakeven figure? Given that its preliminary budget shows a sizable loss, EDI must consider ways to eliminate this loss. What budgetary options should managemeni consider? EDI thinks it can increase the sales of its products by advertising in local newspapers, and has decided to spend 1.000 on advenising To get the most out of its advertising dollar, it has decided to concen- trate on one product only. Given financial concerns only, please discuss how it should decide which product to emphasize? One of the managers of ED! has suggested that, since the company loses so much on shower nozzles, it should discontinde selling them. What advice would you give EDI about this decision? 2Step by Step Solution
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