QUESTION 5 The sales manager of Trishas Global Marketing (TGM) is considering expanding sales by taking...

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QUESTION 5 The sales manager of Trishas Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Relatively minor cosmetic changes will be made to enhance appeal to local tastes. After reviewing the sales forecasts, the sales department feels that 50% of units sold will be the Original product, 30% will be new Euro and the remainder will be the new Pacific. The following information has been assembled by the sales and production departments. Original: Sales Price (per unit)... $65.00: Material cost (per unit)... $26.00; Direct labor (per unit)... $13.00: Variable OH (per unit)... $17.00. Eurd: Sales Price (per unit)... $75.00: Material cost (per unit) $28.00; Direct labor (per unit)... $14.00: Variable OH (per unit)... $16.00. Pacific: Sales Price (per unit)... $70.00: Material cost (per unit)... $23.00; Direct labor (per unit)... $15.00: Variable OH (per unit)... $16.00. I The common fixed costs associated with the manufacture of these three products are $1.920.000 per year and TGM has a marginal tax rate of 25%. If the target sales mix is achieved and 180,000 total units are sold, calculate the estimated total profit before taxes assuming a $2.00 per unit increase in the sales price of the Original can be obtained by investing in a S100,000 sales campaign. No other assumptions are changed. QUESTION 5 The sales manager of Trishas Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Relatively minor cosmetic changes will be made to enhance appeal to local tastes. After reviewing the sales forecasts, the sales department feels that 50% of units sold will be the Original product, 30% will be new Euro and the remainder will be the new Pacific. The following information has been assembled by the sales and production departments. Original: Sales Price (per unit)... $65.00: Material cost (per unit)... $26.00; Direct labor (per unit)... $13.00: Variable OH (per unit)... $17.00. Eurd: Sales Price (per unit)... $75.00: Material cost (per unit) $28.00; Direct labor (per unit)... $14.00: Variable OH (per unit)... $16.00. Pacific: Sales Price (per unit)... $70.00: Material cost (per unit)... $23.00; Direct labor (per unit)... $15.00: Variable OH (per unit)... $16.00. I The common fixed costs associated with the manufacture of these three products are $1.920.000 per year and TGM has a marginal tax rate of 25%. If the target sales mix is achieved and 180,000 total units are sold, calculate the estimated total profit before taxes assuming a $2.00 per unit increase in the sales price of the Original can be obtained by investing in a S100,000 sales campaign. No other assumptions are changed.