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please explain Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9 Pg Up Enter 5 6 (c) How can Kramerica
please explain
Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9 Pg Up Enter 5 6 (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE: The Excel spreadsheet can be very useful for this part as it performs many of these calcu- lations.) - (15 points). In other words: a. What types of recommendations would you make to Kramerica if the expected number of calculator sales is 32,000 over the next year? Should Kramerica purchase the equipment with this expected sales volume? b. Are they going to be profitable; if so, by how much? c. Is there going to be a loss; if so, how much? If there is a loss, what might you recom- mend?). (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE: The Excel spreadsheet can be very useful for this part as it performs many of these calcu- lations.) (15 points). In other words: a. What types of recommendations would you make to Kramerica if the expected number of calculator sales is 32,000 over the next year? Should Kramerica purchase the equipment with this expected sales volume? b. Are they going to be profitable; if by how much? c. Is there going to be a loss; if so, how much? If there is a loss, what might you recom- mend?). Part 1: Break-Even Analysis (Profit Model) Kramerica Industries has successfully completed production of its "tip calculators and would like to perform a break-even profit model analysis. The combination of equipment purchase cost and other resource and facility fixed costs total $850,000. Each calculator costs $15 to produce, but will sell for $39
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