Question
One product line of Anitas Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive The Speedster. The parts list for each
One product line of Anitas 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. The current variable elements per Speedster are: Sales Price (per unit)... $25.00; Material cost (per unit)... $6.00; Direct labor (per unit)... $4.00; Variable OH (per unit)... $7.00. The fixed costs associated with the manufacture and sales of this product are $480,000 per year and Anitas uses a marginal tax-rate of 20% for planning purposes. If AA sells 100,000 Speedsters what is expected profit before taxes?
one product line of anitas 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. the current variable elements per speedster are: sales price (per unit)... $25.00; material cost (per unit)... $6.00; direct labor (per unit)... $4.00; variable oh (per unit)... $7.00. the fixed costs associated with the manufacture and sales of this product are $480,000 per year and anitas uses a marginal tax-rate of 20% for planning purposes. if aa sells 100,000 speedsters what is expected margin of safety in terms of units?
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