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Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone.
Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to aid our analysis of this model. Select Market _A_ _B_ D _E_ _G_ _H_ 23575000 19550000 Total Fixed Costs 13800000 12305000 11500000 Rent Supervisor salaries Office salaries Equipment Property depreciation taxes Variable Costs Per Unit Battery Camera Internal Components Receiver Screen Speaker $10 $45 $95 $25 $35 $90 +ableau Important! Be sure to click the correct Market at the top of the dashboard. 1. For Market G, compute break-even point in units. Numerator: Fixed costs Denominator: / Contribution margin per unit Sales Price Per Unit iPhone 2. For Market G, compute the units of product that must be sold to earn income of $9,000,000. Numerator: Total fixed costs plus target income Denominator: / Contribution margin per unit 3. For Market G, compute the dollar value of sales that must be sold to earn income of $9,000,000. Numerator: Total fixed costs plus target income I Denominator: / Contribution margin ratio D Break-Even Units Break-even units = Units to Achieve Target = Units to achieve target = Dollar Value of Sales = Dollar value of sales 0
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