Nepture Comparty has develeped a smal infalable toy that it k arwious 40 introduce to its cusboren. The comparys Marketieg Departinent estimates thas demind for the new toy we range between 17000 units ardi 37000 unies per tonth. The new 4 tor wil sell for 53.00 per unt. Enough capocty exists in the co-parys plset to produce 20.000 units of the toy each moner Variable expenses to manufactire and set one unt would be $100, and incremental fixed expenses associaeed wath the 10y wouid totat $27%00 per month. Nepeune has also identifed an outude suppler who could produce the toy for a price of $175 per unk plus s fived fee of $20000 per mants for any production volume io to 22,000 unts. For a producsion volume between 22,001 and 42000 unts the fixed fee woind increase to a total af $40.000 per worth Requiredi 1. Calculste the break-even point in unit sales assuming that Neptune does net hire the outside supcile! 2. How much profit will Neptune eaen assuming a. It produces and sells 20000 units: B. It does not produce any unts and instesd outsources the productos of 20,000 units to the oseside moplec and then setts those units io its cuathmers. 3. Caiculate the break even porst in int sokes assuting that Neptune plans to use at of its production capscty to produce the frst 20,000 unts that it sels and that if also commias io kiring the cutide suppler so produce up 10 17,000 edd tonal units 4. Assume that Nephune plans to use all of as producton capacty to produce the first 20.000 units that it seth and that aiso commath to hiring the outside supplier to produce up to 17,000 additiorial units. a. What toeki irit sales wodd Nephane need to achieve in erder to equal the proff eamed in sequrement za? b. What total unit sales woudd Neptune need to acheve in eeder 60 attain s target proft of $15.500 per month? c. How much profit will Neptune earn a it sels 37,000 unts per month? c. How much poeft wit Neptune eam if it sells 37,000 units per month and agrees to pay its marketing manager a bonus of 30 cents for each unit sold above the break even point from requrement 3 ? Nepture Comparty has develeped a smal infalable toy that it k arwious 40 introduce to its cusboren. The comparys Marketieg Departinent estimates thas demind for the new toy we range between 17000 units ardi 37000 unies per tonth. The new 4 tor wil sell for 53.00 per unt. Enough capocty exists in the co-parys plset to produce 20.000 units of the toy each moner Variable expenses to manufactire and set one unt would be $100, and incremental fixed expenses associaeed wath the 10y wouid totat $27%00 per month. Nepeune has also identifed an outude suppler who could produce the toy for a price of $175 per unk plus s fived fee of $20000 per mants for any production volume io to 22,000 unts. For a producsion volume between 22,001 and 42000 unts the fixed fee woind increase to a total af $40.000 per worth Requiredi 1. Calculste the break-even point in unit sales assuming that Neptune does net hire the outside supcile! 2. How much profit will Neptune eaen assuming a. It produces and sells 20000 units: B. It does not produce any unts and instesd outsources the productos of 20,000 units to the oseside moplec and then setts those units io its cuathmers. 3. Caiculate the break even porst in int sokes assuting that Neptune plans to use at of its production capscty to produce the frst 20,000 unts that it sels and that if also commias io kiring the cutide suppler so produce up 10 17,000 edd tonal units 4. Assume that Nephune plans to use all of as producton capacty to produce the first 20.000 units that it seth and that aiso commath to hiring the outside supplier to produce up to 17,000 additiorial units. a. What toeki irit sales wodd Nephane need to achieve in erder to equal the proff eamed in sequrement za? b. What total unit sales woudd Neptune need to acheve in eeder 60 attain s target proft of $15.500 per month? c. How much profit will Neptune earn a it sels 37,000 unts per month? c. How much poeft wit Neptune eam if it sells 37,000 units per month and agrees to pay its marketing manager a bonus of 30 cents for each unit sold above the break even point from requrement 3
