Masterpad produces one model of a table-tennis paddle, at a volume of 100,000 . The selling price is 5.40 per unit. The production process is simple: the body is cut from a wooden plate, assembled with the handle, and finally covered with rubber sheets. Materials requirements are indicated in the table below. Production costs amount to 62,000 for the production wages, 70,000 for the depreciation of machines and equipment, and 34,000 for other production costs (energy, maintenance, etc.). The company spends 112,000 in advertising and selling expenses. In addition, a commission is paid to the sales representatives: 2% of sales revenues. Finally, administrative expenses amount to 99,000. 1. What is the cost a paddle? 2. What is the profit if Masterpad sells 100,000 units? 3. What is the minimum volume of activity to have a profit? (to break even) 4. What is the profit for 150,000 paddles? 5. How many paddles to reach a profit of 50,000 ? 6. What are the profit and BEP if direct materials costs are decreased to 1.20 per unit? 7. Increasing the advertising expenses by 50,000 will allow to sell 120,000 paddles. What will the profit be? 8. Decreasing the price to 5.20 will allow to sell 120,000 paddles. What will the profit be? Masterpad produces one model of a table-tennis paddle, at a volume of 100,000 . The selling price is 5.40 per unit. The production process is simple: the body is cut from a wooden plate, assembled with the handle, and finally covered with rubber sheets. Materials requirements are indicated in the table below. Production costs amount to 62,000 for the production wages, 70,000 for the depreciation of machines and equipment, and 34,000 for other production costs (energy, maintenance, etc.). The company spends 112,000 in advertising and selling expenses. In addition, a commission is paid to the sales representatives: 2% of sales revenues. Finally, administrative expenses amount to 99,000. 1. What is the cost a paddle? 2. What is the profit if Masterpad sells 100,000 units? 3. What is the minimum volume of activity to have a profit? (to break even) 4. What is the profit for 150,000 paddles? 5. How many paddles to reach a profit of 50,000 ? 6. What are the profit and BEP if direct materials costs are decreased to 1.20 per unit? 7. Increasing the advertising expenses by 50,000 will allow to sell 120,000 paddles. What will the profit be? 8. Decreasing the price to 5.20 will allow to sell 120,000 paddles. What will the profit be