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please help asap The salespeople at Cheyenne, a notebook manulacturer, commonly pressured operations managers to keep costs down so the compary could give bieger discounts
please help asap
The salespeople at Cheyenne, a notebook manulacturer, commonly pressured operations managers to keep costs down so the compary could give bieger discounts to large customers. Mark, the operations supervisor, leaked the $1.15 totai unit cost to salespeople, who were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet finalized for the upcoming year, so it was unclear what the target unit cost would be. Mark knew the current year's operating capacity was two million notebooks, and Cheyenne produced and sold just that many. The detailed breakdown of the $1.15 total unit cost is as follows. (a) What were Cheyenne's total fixed costs? If the average selling price was $1.95, how much gross margin did the company generate? Total fixed costs Gross margin 5 (b) If Cheyenne incurs exactly the same total fixed costs but produces and sells only 1,600,000 notebooks this coming year, what happens to the fixed cost per unit? In turn, what would the total cost per unit be? If the average selling price stays at $1.95, how much gross margin would be earned? (Round per unit answers to 2 decimal ploces, es. 15.25.) Fixed costs Total cost per unit Gross margin Step by Step Solution
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