1. 

Screen Shot 202105-21 6110.56.49 PM v Q Q @ 7 ED Q Factory rent $400000 Machine depreciation 150,000 Utility fee and local taxes 52,000 Supervision 127 Monthly xed costs $729000 D 0 Screen Shot 2021-05-21 at1o.56.21 PM Exhibit 1 Standard Variable Costs for iPhone 4 (US. Dollars) Bill of materials (per unit) Purchased chips: Flash memory (Samsung) $27.00 Application processor (Samsung) 10.75 Chip for phone calls (Innion) 14.05 Gryoscope (STMicroelech'onis) 2.60 8 other purchased chips 70.95 $125.35 Variable supplies and tools 62.54 187.89 Labor: Assembly and packaging (per unit) 13.11 Shipping (per unit) 1.06 a' Revenue (transfer from Shenzhen) Variable costs Materials Flash memory Application process Chipsphone Gyroscope 8 other chips Variable supplies and tools Subtotal Labor Assembly and packaging Shipping Total variable costs Fixed Costs: Factory rent Machine depreciation Utility fee and taxes Supervision Total xed costs Total costs Net income in Monthly Budget (200,000 units) $41,240 5,400 2, 150 2,810 520 14,190 Q 37,577 2,622 m 40,411 400 150 52 m 729 um $ 100 screen Shot 2021-0521 at 'IU.b/.'|8 PM Q Actual (180,000 units) $37,476 5,249 1,935 2,529 468 12,643 LE 34, 129 3,092 m 37,412 400 150 52 m 736 118% $ (672) Variance (20,000 units) $3,764 U 151 F 215 F 281 F 52 F 1,547 F 1M 3,448F 470 U M 2,999 F E 7 U am $ 772 U