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Question 1: Falcon Compary manutactues the camera system of a DRONE assembly. Its manulacturing assemby plant is located at the middle east, and started its
Question 1: Falcon Compary manutactues the camera system of a DRONE assembly. Its manulacturing assemby plant is located at the middle east, and started its operation in the year 2010 . The company exported eighty peroent of its production to the Amercan and European drone comparies. It has at least three compettiors producing the same ine of product for drone asserbily in China, Soust Korea and India. The CEO or Chief Operating Offcer of Falcon compary is looking fonward on is company stalegles io cope up with the sifiliompetiton in the market. Seling price, raw material cosis, abor costs, and disthbution costs are just some of the tems that the CEO are keen of considering for possible financial analysis. He directed his cperation mansger, purchasing manager, and finance manage for an ungent meeting to discuss this matter. The meefing will be fousing on the strategies io further reduve company/s cost of production, and other product related and ovehtead cosst. The company estimated monthly costs and monthy sale revenues for this coperation are given in Table QL. Al costs are monthy basis except the company tares. To start with the analysis, the offcers detemine the following: (i) The breakeven point for this silvasion; (i) Contribution margin, (ii) Using a production range from zero to 10,000 urits a month, develop the following cost.volume-profit graphical presentations and explain their significance. (a) Abreakeren chat; (b) A profit-volume graph. (im) Discuss posstle stralegies of the company to decrease breakeven poirt, contribution margin, and increase profitability without having risk of losing the maket share
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