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.

Rent: 10,250,000

Supervisor Salaries: $8,500,000

Office Salaries: $6,000,000

Equipment Depriciation: $5,350,000

Property Taxes: $5,000,000

Battery: $10

Camera: $45

Internal Components: $90

Reciever: $35

Screen: $95

Speaker: $25

Sales Price Per Unit: $750

Answer the requirements for each of the following separate situations. 1. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. 2(a). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine. 2(b). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 3(a). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apples sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. 3(b). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apples sales volume to 110,000 units. Compute income if Apple does increase advertising expenses.

Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 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. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. pple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by 4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses. Variable Costs Per Unit Internal Components Receiver Sales Price Per Unit iPhone Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine