need explaination on all

Reason Option with tower Fored Cost Equal Profits, ie. Indifference Point Lower Variable Cost or Higher PV Ratio Student Strato come perform Eaton CA Final Sale Quantity Preferable Production Method 500 000 Cores SOLD com Esther AB 500,000 copies om B and Method=375.000 copies. So, the Company forecasts a low demand situation, it should choose Method A Maintaining Same Profit: Minimum copies to be sold to maintain the same profit are: Method A-3,33,333 Copies, Closure of Existing Magazines BEP / Shutdown Point of existing Magazine Fixed Costs Contribution per Unit dose the existing magazine since it will operate below shut-down point. If New Magazine, Le Method A or Method B, sells more than 6,00,000 copies (60,000 30,000 toys > 2,000 hours Own Production Lower Variable Costs per unit Hence, the minimum excess machine hour capacity needed to justify the manufacturing of any portion of the Toy Order is 2,000 Machine Hours. Alternative Method: Savings due to own production = 57.50 - 50.00 = 7.50 per unit, whereas specific Mould Costs 32,25,000 = 2,25,000. Hence, minimum own production required to justify recovery of Mould Cost = = 30,000 toys. If * 7.50 the Company does not have adequate spare capacity to produce atleast 30,000 toys (i.e. equivalent to 2,000 machine hours), it should sub contract the entire Toy Order. 7. Loss due to improper demand prediction and negotiation (A) Profits that should have been earned by negotiating properly at 4,80,000 Cans 4,80,000 Cans Capacity Used for Cans = = 16,000 machine hours. Since balance machine capacity is 2,000 hours, i.e. 30 Cans per hour Indifference Point between sub-contracting and own production, the Company should have earned the following profit - 9.33 Solut Toys (sub-contract) Toys (Make) 2,000 hours 2,000 x 15 = 30,000 Toys 10 3,00,000 (a)s (0) C (0) (e) Balance 30,000 Toys 25,000 toys > 1,562.5 hours Own Production Lower Variable Costs per unit Slence, the minimum excess machine hour capacity needed to justify the manufacturing of any portion of the Toy Order is 1,562.5 Machine Hours Production Qtty