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Part 5 a Evtel Kitchen Appliances is planning to upgrade Low Option with several materials and present it as High Option. Since High Option has
Part 5 a Evtel Kitchen Appliances is planning to upgrade Low Option with several materials and present it as High Option. Since High Option has better qualifications, it will be more expensive. Evtel Kitchen Appliances expects 12,500 newcomers, and the quality of High Option changed the ideas of 2,500 Low Option users, so they switched to High Option. The company assumes that High Option will require leasing some new equipment that will cost approximately 1,000,000 TL annually. Solve the questions in Part 5 accordingly. (Remark: Use Table B for High Option.) (Remark: All questions are independent.) How much more Low Option can be cannibalized without any loss on profit considering there are already 2,500 cannibalized customers? (Remark: Do not round the answer!) With the introduction of High Option, there are more newcomers than expected, so sales have gone up by 8% on High Option. Find the difference between the new Gross Margin and the Gross Margin you found in Part 3c. (Report a positive value) STILE CVLEI NILLITET Appliances Saw Lidl tre prou ll quality ALL CLLS LUslommer, Le company LELIUEU LU Improve nign Option and reduce the expenses of Marketing, Selling and Distribution Expenses. Now every High Option's variable cost increased by 30 TL, but Marketing, Selling and Distribution Expenses are reduced by 20%. Report the new Income Tax b Part 6 a Ms. Adanali wants to evaluate different scenarios. Use the sales volumes given in Part 5. (Remark: All questions are independent.) Instead of leasing the machinery for the new product, Ms. Adanali decided to purchase the machinery upfront for the High Option. If the new net income is 13,000,000 TL and the life cycle of the machinery is 4 years, report the cost of the machinery Since the company was very satisfied with the high option sales, the company decided to sell only the High Option. In this case, at least how many high options should be sold so that the net income at the end of Part 3 can be obtained. (Remark: They will still pay the direct fixed costs given in "Annual Fixed Costs" table in addition to other production costs. Do not b TABLE A TABLE B B High Option Low Option Annually Estimated Sales Price (TL) Annually Estimated Sales Annual Fixed Costs (TL) Marketing, Selling and 725,000.00 Distribution Expenses Administration Expenses 1,250,000.00 R&D R 379,000.00 Direct Fixed Costs 4,750,000.00 30,000.00 1,282.00 Price (TL 15,000.00 1,459.00 $ Materials Stove Oven Display Screen Driver Electronic Card Bluetooth Fan Light Bulb Number Required Unit Costs (TL) 1 172.25 1 242.15 1 19.25 2 18.10 1 11.97 11 11.16 2 7.99 1 4.99 Materials Stove Oven Display Screen Driver Electronic Card Bluetooth Fan Light Bulb Smart Connectivity Number Required Unit Costs (TL) 202.25 1 252.15 2 36.24 2 2 18.10 1 11.97 1 11.16 8 7.99 2 5.99 1 39.99 TAX RATE 20% Direct Labor Costs Packaging Cost Per 85.32 49.27 Direct Labor Costs Packaging Cost Per Unit 10% 4% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost Part 5 a Evtel Kitchen Appliances is planning to upgrade Low Option with several materials and present it as High Option. Since High Option has better qualifications, it will be more expensive. Evtel Kitchen Appliances expects 12,500 newcomers, and the quality of High Option changed the ideas of 2,500 Low Option users, so they switched to High Option. The company assumes that High Option will require leasing some new equipment that will cost approximately 1,000,000 TL annually. Solve the questions in Part 5 accordingly. (Remark: Use Table B for High Option.) (Remark: All questions are independent.) How much more Low Option can be cannibalized without any loss on profit considering there are already 2,500 cannibalized customers? (Remark: Do not round the answer!) With the introduction of High Option, there are more newcomers than expected, so sales have gone up by 8% on High Option. Find the difference between the new Gross Margin and the Gross Margin you found in Part 3c. (Report a positive value) STILE CVLEI NILLITET Appliances Saw Lidl tre prou ll quality ALL CLLS LUslommer, Le company LELIUEU LU Improve nign Option and reduce the expenses of Marketing, Selling and Distribution Expenses. Now every High Option's variable cost increased by 30 TL, but Marketing, Selling and Distribution Expenses are reduced by 20%. Report the new Income Tax b Part 6 a Ms. Adanali wants to evaluate different scenarios. Use the sales volumes given in Part 5. (Remark: All questions are independent.) Instead of leasing the machinery for the new product, Ms. Adanali decided to purchase the machinery upfront for the High Option. If the new net income is 13,000,000 TL and the life cycle of the machinery is 4 years, report the cost of the machinery Since the company was very satisfied with the high option sales, the company decided to sell only the High Option. In this case, at least how many high options should be sold so that the net income at the end of Part 3 can be obtained. (Remark: They will still pay the direct fixed costs given in "Annual Fixed Costs" table in addition to other production costs. Do not b TABLE A TABLE B B High Option Low Option Annually Estimated Sales Price (TL) Annually Estimated Sales Annual Fixed Costs (TL) Marketing, Selling and 725,000.00 Distribution Expenses Administration Expenses 1,250,000.00 R&D R 379,000.00 Direct Fixed Costs 4,750,000.00 30,000.00 1,282.00 Price (TL 15,000.00 1,459.00 $ Materials Stove Oven Display Screen Driver Electronic Card Bluetooth Fan Light Bulb Number Required Unit Costs (TL) 1 172.25 1 242.15 1 19.25 2 18.10 1 11.97 11 11.16 2 7.99 1 4.99 Materials Stove Oven Display Screen Driver Electronic Card Bluetooth Fan Light Bulb Smart Connectivity Number Required Unit Costs (TL) 202.25 1 252.15 2 36.24 2 2 18.10 1 11.97 1 11.16 8 7.99 2 5.99 1 39.99 TAX RATE 20% Direct Labor Costs Packaging Cost Per 85.32 49.27 Direct Labor Costs Packaging Cost Per Unit 10% 4% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost
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