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One product line of Anita's Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive - The Speedster. The parts list
One product line of Anita's Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive - The Speedster. The parts list for each unit is: 1 standard USB plug, 1 USB mass storage controller, 1 NAND flash memory chip, 1 crystal oscillator, and 1 cover. In the table are the current sales price and variable costs per Speedster. The fixed costs associated with the manufacture and sales of this product are $650,000 per year and Anita's uses a marginal tax-rate of 20% for planning purposes. Speedster Sales Price (per unit) $32.50 Material cost (per unit) $12.00 Direct labor (per unit) $4.00 Variable OH (per unit) $6.00 What is the number of Speedsters required to earn a profit of $140,000 per year after taxes? Question 6 The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes will be made to enhance the product's appeal to local tastes. The information in the table has been assembled by the sales and production departments. The common fixed costs associated with the manufacture of these three products are $2,200,000 per year and TGM has a marginal tax rate of 25%. Item Sales Price (per unit) Original $64.70 Euro $71.00 Pacific $ 80.00 Variable Costs (per unit) $ 50.00 $ 59.00 $66.00 Sales Mix 60% 25% 15% 10 pts Determine the Weighted Average CM of TGM for these products. Round to nearest $0.01.
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