Question
Part 1 of 3 the assignment - this is for a multiyear basis for a global washer and dryer manufacturer. They currently offer two core
Part 1 of 3
the assignment - this is for a multiyear basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high end model and an economic model. You are tasked to complete several calculations and present your finding to the company stakeholders. You may use any presentation software (Google Slides, Prezi, PowerPoint, etc.) and you completed presentation should consist of 8 -12 sides.
1. For your first assignment,
management has provided the following revenue and cost information:
For this activity, you have
been hired as a team of consultants on a multiyear basis for a global washer
and dryer manufacturer. They currently offer two core washer and dryer sets: a
high end model and an economic model. You are tasked to complete several
calculations and present your finding to the company stakeholders. You may use
any presentation software (Google Slides, Prezi, PowerPoint, etc.) and you
completed presentation should consist of 8 -12 sides
Part 1. For your first
assignment, management has provided the following revenue and cost information:
High End Set Economical Set
Sales Price $3,500 per unit $1,000 per unit
Labor $875 per unit $250 per unit
Materials $1,400 per unit $300 per unit
Direct Fixed costs $25,000 per month $16,500 per month
Allocated Fixed costs $85,000 per month $85,000 per month
They want a better
understanding of their business to make budgeting and sales goals decisions and
have asked you to determine their:
a)Contribution
Margins for each product line
b)Break-even
quantities for each product line
c)Break
even quantities to earn $500,00 per year margin on the high-end line (at the
current sales price)
d)Break
even quantities to earn $300,00 per year margin on the economical line (at the
current sales price)
They expect the product lines
to fully absorb the costs allocated to them. They have also asked that you show
each step in your calculations so that they can understand your analysis.
(Note: you will be graded on your intermediary values.)
Once you have determined
these amounts, they have asked that you
Present the information
Describe how you performed your calculations
And explain whet the results mean
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