please solve all. will give thumbs up.
Information ption Founded nearly 50 years ago by Alfred Smith, Beautiful Clooks specializes in developing and marketing a diverse line of large ornamental clocks for the finest homes. Tastes have changed over the years, but the company continually updates its ines to satisfy customer style and its affluent clientele. The Lester-Smith family continues to own a majority share of the company and the grandchildren of Alfred Laster-Smith now hold several managerial positions. On of these grandchildren is Meredith Lester-Smith, the new CEO of the company. Meredith feels a great responsibility to maintain the family heritage. So realize the company must continue to develop and market exciting products. Since the Soth anniversary of the company is approaching, she has decided to select a particularly special new product to launch with great fandere on the anniversary. But what should it be? As she ponders this crucial decision, Meredith recals the magnificent grandfather clock that her grandparents had in their home many years ago. How about launching a modern version of this clock? This is a difficult decision Grandfather clocks have gone out of style. However, if she is so nostalgic about the grandfather clock in her grandparent's home, wouldn't there be similar wealthy couples with similar memories who would welcome the opportunity to purchase a limited edition clock. It would all depend on whether there is enough sales potential to make a profitable product Meredith realizes that a break-even analysis is needed to help make this decision. She instructs several staff members to perform an analysis, developing estimates of related costs and revenues as well as forecasting potential sales. One month later the financial figures are available. The cost of designing the grandfather clock and then setting up the production facilities to produce this product would be approximately $250.000. There would only be one production run for the limited edition clock. The additional cost per clock produced would roughly be $2,000. The marketing department estimates they would sell each clock for $4,500 a plece, but a firm forecast of how many of such clocks would be sold has not yet been obtained. However, it is believed that the sales would reach into the digits. Meredith wants all these numbers pinned down considerably further but feels that some analysis can be done to achieve preliminary conclusions. Develop a spreadsheet model and find the break-even point for the number of clocks to be produced. 100 QUESTION 2 Develop the corresponding mathematical expression for the estimated profit in terms of the number of clocks produced. Pbx)=2,500x250,000 OP)-250,0000 4,000 OPW-2,500X-250,000 P-4,000x-250,000 QUESTION 3 A fairly reliable forecast has now been obtained which says that the company could possibly sel 300 such clocks. What is the minimum price that Meredith could sell these clocks before the clocks cease to be profitable. That is what is the minimum break-even price she could charge. Round to two decimal places QUESTION 4 12 How large can the production cost for each additional clock be (assuming original fixed cost of $250,000) before the grandfather clocks cease to be profitable? Assume the estimate of 300 clocks QUESTION 5 12 p Assuming that 300 clocks will be sold, and the variable cost per clock remains at $2000, and the revenue per clock is $4,500, how large can the fixed costs be before the grandfather clocks cease to be profitable? QUESTION 6 Now suppose that 300 grandfather clocks are produced, but only 200 are sold. State the profit/loss to produce and sell the grandfather clocks under this circumstance. Assume original production costs and revenue. QUESTION 7 Would you still recommend Meredith proceed with the production line? Yos No QUESTION 8 With 300 clocks produced and only 200 sold Meredith should proceed with the production because The costs exceed the revenue. There will still be a profit margin The revenue equals the costs. None of the above
