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please help me with calculations for question 1,2,3. I have provided the numbers too in the picture. please explain how you calculated each step. FND

please help me with calculations for question 1,2,3. I have provided the numbers too in the picture. please explain how you calculated each step. image text in transcribed
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FND Hill has two options to enter the small business market - through a partnership or through direct sales. The costs and pricing differs for each opproach. Hill Partnership: - Sales price is 35% lower - Hill would sell and service the products - FND is considering paying commissions to their own sales force Direct Sales - Sales are expected to be 25% of possible sales through the partnership - Service and sales support costs would be incurted 1. Determine the unit contribution margin for the RX-10 model and for the RX-50 model under the direct-sales approach. 2. Determine the unit contribution margin for each of the two product models selling through the potential Hill partnership channel. Prepare your analysis including and excluding cornmissions. 3. The HAll partnership has estimated low sales volume of 2,500 and estimated high volume of 5,000 units. The estimated direct sales volume would be 25% of the Hill partnership. Using your calculations from Questions 1 and 2, above, prepare an analysis of incremental Total Contribution Margin (TCM) for sales through the Hill channel for four scenarios: a. If all Hill sold was RX10 s in a volume of 2,500 units per year. b. If all Hill sold was PX50 s in a volume of 2,500 units per year. c. If all H ll sold was $x10s in a volume of 5,000 units per vear. d. If all Hill sold was RX-50s in a volume of 5,000 units per year, (Those four possibilities should provide good estimates of the minimum and maximum TCM effects of the proposed parthership arrangement.) Note that the case estimates direct sales at 25% of those sales (Those four possibilities should provide good estimates of the minimum and maximum TCM effects of the proposed parthership arrangement.) Note that the case estimates direct sales at 25% of those sales possible through Hill. In your comparison, use 25% of the Low \& High estimates for the comparable direct sales. Tahle 1 Basic Information About Herald Products Note: All monetary values are expressed in U.S. dollars. Tahle o Comnarative RC Warrantu Service Costs ner Average Service Call - Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. * Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. Table 3: ABC Sales Profile Data Average per Successful Sales Event *Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicate tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hir do. On an annual basis, they are paid hours less holidays, vacation, sick time, training, and administrative complian hours. For sales, the time consumed pursuing "dead end" leads is included in the successful event averages FND Hill has two options to enter the small business market - through a partnership or through direct sales. The costs and pricing differs for each opproach. Hill Partnership: - Sales price is 35% lower - Hill would sell and service the products - FND is considering paying commissions to their own sales force Direct Sales - Sales are expected to be 25% of possible sales through the partnership - Service and sales support costs would be incurted 1. Determine the unit contribution margin for the RX-10 model and for the RX-50 model under the direct-sales approach. 2. Determine the unit contribution margin for each of the two product models selling through the potential Hill partnership channel. Prepare your analysis including and excluding cornmissions. 3. The HAll partnership has estimated low sales volume of 2,500 and estimated high volume of 5,000 units. The estimated direct sales volume would be 25% of the Hill partnership. Using your calculations from Questions 1 and 2, above, prepare an analysis of incremental Total Contribution Margin (TCM) for sales through the Hill channel for four scenarios: a. If all Hill sold was RX10 s in a volume of 2,500 units per year. b. If all Hill sold was PX50 s in a volume of 2,500 units per year. c. If all H ll sold was $x10s in a volume of 5,000 units per vear. d. If all Hill sold was RX-50s in a volume of 5,000 units per year, (Those four possibilities should provide good estimates of the minimum and maximum TCM effects of the proposed parthership arrangement.) Note that the case estimates direct sales at 25% of those sales (Those four possibilities should provide good estimates of the minimum and maximum TCM effects of the proposed parthership arrangement.) Note that the case estimates direct sales at 25% of those sales possible through Hill. In your comparison, use 25% of the Low \& High estimates for the comparable direct sales. Tahle 1 Basic Information About Herald Products Note: All monetary values are expressed in U.S. dollars. Tahle o Comnarative RC Warrantu Service Costs ner Average Service Call - Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. * Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. Table 3: ABC Sales Profile Data Average per Successful Sales Event *Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicate tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hir do. On an annual basis, they are paid hours less holidays, vacation, sick time, training, and administrative complian hours. For sales, the time consumed pursuing "dead end" leads is included in the successful event averages

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