Please help me answer the questions attached within 30 minutes! I really appreciate it!

2) Multiple-Level Break-Even Analysis Nielsen Associates provides marketing services for a number of small manufacturing firms. Nielsen receives a commission of 10 percent of sales. Operating costs are as follows: Unit-level costs $0.02 per sales dollar Sales-level costs $200 per sales order Customer-level costs $800 per customer per year Facility-level costs $60,000 per year (a) Determine the minimum order size in sales dollars for Nielsen to break even on an order. (b) Assuming an average customer places five orders per year, determine the minimum annual sales required to break even on a customer. (c) What is the average order size in (b)? (d) Assuming Nielsen currently serves 100 customers, with each placing an average of five orders per year, determine the minimum annual sales required to break even. (e) What is the average order size in (d)? (f) Explain the differences in the answers to (a), (c), and (e). The most important costs to cover are unit level costs. In the long-run the most important costs are facility level costs. Even if individual orders have a positive contribution, some customers may be unprofitable. In multiple customer firms the break-even point decreases as the number of customers increases. 3) CVP Analysis and Special Decisions Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. The most recent year's sales revenue was $4,200,000. Variable costs were 60 percent of sales and fixed costs totaled $1,200,000. Sweet Grove is evaluating two alternatives designed to enhance profitability. One staff member has proposed that Sweet Grove purchase more automated processing equipment. This strategy would increase fixed costs by $300,000 but decrease variable costs to 54 percent of sales. Another staff member has suggested that Sweet Grove rely more on outsourcing for fruit processing. This would reduce fixed costs by $300,000 but increase variable costs to 65 percent of sales. Round your answers to the nearest whole number. (a) What is the current break-even point in sales dollars? $ Answer 0 0.00 points out of 1.00 (b) Assuming an income tax rate of 38 percent, what dollar sales volume is currently required to obtain an after-tax profit of $600,000? $ Answer 0 0.00 points out of 1.00 (c) In the absence of income taxes, at what sales volume will both alternatives (automation and outsourcing) provide the same profit? $ Answer 0 0.00 points out of 1.00 (d) Briefly describe one strength and one weakness of both the automation and the outsourcing alternatives. Automation has higher profits if sales increase and a lower break-even point. Outsourcing has less risk. Automation has less risk and a lower break-even point. Outsourcing has higher profits if sales increase. Automation has higher profits if sales increase. Outsourcing has less risk and a lower break-even point. Automation has less risk. Outsourcing has higher profits if sales increase and a lower break-even point. Chapter 4 1)Outsourcing (Make-or-Buy) Decision Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10. Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each. If HewlettPackard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year. In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI. Use a negative sign with your answer, if appropriate. 2) Make or Buy Rashad Rahavy, M.D., is a general practitioner whose offices are located in the South Falls Professional Building. In the past, Dr. Rahavy has operated his practice with a nurse, a receptionist/secretary, and a parttime bookkeeper. Dr. Rahavy, like many small-town physicians, has billed his patients and their insurance companies from his own office. The part-time bookkeeper, who works 10 hours per week, is employed exclusively for this purpose. North Falls Physician's Service Center has offered to take over all of Dr. Rahavy's billings and collections for an annual fee of $12,000. If Dr. Rahavy accepts this offer, he will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $15 per hour, and the bookkeeper works 50 weeks per year. With all the billings and collections done elsewhere, Dr. Rahavy will have two additional hours available per week to see patients. He sees an average of three patients per hour at an average fee of $30 per visit. Dr. Rahavy's practice is expanding, and new patients often have to wait several weeks for an appointment. He has resisted expanding his office hours or working more than 50 weeks per year. Finally, if Dr. Rahavy signs on with the center, he will no longer need to rent a records storage facility for $100 per month. (a) Calculate the net benefit (cost) of outsourcing the bookkeeping. 3) Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $5 per liter. Product G can then be sold for $16 per liter. Determine whether Product F should be sold or processed further into Product G. Calculate the net benefit (cost) of further processing. 4) Relevant Costs for Equipment Replacement Decision Health Scan, Inc. paid $50,000 for X-ray equipment four years ago. The equipment was expected to have a useful life of 10 years from the date of acquisition with annual operating costs of $35,000. Technological advances have made the machine purchased four years ago obsolete with a zero salvage value. An improved X-ray device incorporating the new technology is available at an initial cost of $41,000 and annual operating costs of $25,000. The new machine is expected to last only six years before it, too, is obsolete. Asked to analyze the financial aspects of replacing the obsolete but still functional machine, Health Scan's accountant prepared the following analysis. After looking over these numbers, the Center's manager rejected the proposal. Six-year savings [($35,000 $25,000) 6] $60,00 0 Cost of new machine (41,000 ) Undepreciated cost of old machine (30,000 ) Advantage (disadvantage) of replacement $(11,00 0) Calculate the net benefit (cost) of purchasing the new machine. 5) Special Order Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2009 is as follows: TOBITZU TV Budgeted Income Statement For the Year 2009 Sales ($46 per unit) $4,600,000 Cost of good sold ($32 per unit) (3,200,000) Gross profit 1,400,000 Selling expenses ($5 per unit) (500,000) Net income $900,000 Additional Information (1) Of the production costs and selling expenses, $800,000 and $100,000, respectively, are fixed. (2) Tobitzu TV received a special order from a hospital supply company offering to buy 14,000 wall mounts for $30. If it accepts the order, there will be no additional selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the order because "we are not in the business of paying $32 to make a product to sell for $30." Calculate the net benefit (cost) of accepting the special order. $ Answer 6) Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $4,800. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $2,600. The completed sailboats could then be sold for $6,900 each. Calculate the net benefit (cost) of processing the boat hulls into sail boats. Assume sales volume will not be affected. Use a negative sign with your answer, if appropriate