Negtune Cerpany has develeped a sonal intlatabie toy trat it is anwous to invoduce to is custamers. The conpeny's Meketing: Departroent esimetes that demend for Eee new toy will range between 17000 unes and 37,000 units per month. The new toy witi set month morth for any producton volume up ta 22.000 units. Fer a production volume between 22.001 and 42.000 units the fived fee would incresse to a total of $40 poo per month. Required: 1 Calculate the brewk twen point in unit saies assuming that Neptune does not hire the outside supplet 2. Hew much proft wa Neptice eem avveming it it produces and pets 20000 unte. urits to its custonen. 4. Asvume that Neptune pilans 10 use al of its production capacity to produce the frist 20.000 units that it sels and that it alio commits to hiring the outaise supplien to produce vp to 7000 sditional unts a. What totel init suies woild Nejtune need to echieve in arder to equal the proft eamed in requeersent 7el ? b. What totai unit saies wosid Nepturie need to actieve in order to attain a tiget prott of $15.500 per month? c. How much prott wit Neptune ean if it sels 37000 unts per month? d. How much proft wal Neptune eam if it jees 37000 units pet month and agees to pay its marketing managet a bonos of 30 cents for eech unit sold abowt the break even point from reculiement 3? Verwate to e ititel of 340000 ger month Aequired 2. How much grof will Neptune earn susuming A 1 produces avd velle 20.000 unis: livits to it cuntemen. a Wrat botat unt seies would treptune need to achieve in order to equal the oroft eained in tequienent ze? b. What totsi unz sees wouls Neptune need to echeve in order to attain a terget prots of 5.5500 pet month? c. How much profn will Neptune een it it sets 37000 units pet mosten? far eech unit sold above the break even point from requirement 37 5. If Neptune putsourcet at productoon to the outsde suppler, how much preft wat tre company eam it th sels 37000 units? 5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 37,000 units? 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 20,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 20,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a ? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $15,500 per month? c. How much profit will Neptune earn if it sells 37,000 units per Neptune has also identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 22,000 units. For a production volume between 22,001 and 42,000 units the fixed fee would increase to a total of $40,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. 2. How much profit will Neptune earn assuming: a. It produces and sells 20,000 units. b. It does not produce any units and instead outsources the production of 20,000 units to the outside supplier and then sells those units to its customers. Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 17,000 units and 37,000 units per month. The new toy will sell for $3.00 per unit. Enough capacity exists in the company's plant to produce 20,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.00, and incremental fixed expenses associated with the toy would total $27,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 22,000 units. For a production volume between 22,001 and 42,000 units the fixed fee would increase to
