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Section 1 Problem 2 (25 points). The company currently Kiwi Telephone Technology is a manufacturer of smartphones. manufactures two types of these phones: the
Section 1 Problem 2 (25 points). The company currently Kiwi Telephone Technology is a manufacturer of smartphones. manufactures two types of these phones: the Deluxe, which is a larger model, with a large screen, designed for use in a car or carried in a handbag, and the Standard, with a smaller screen, designed to be carried in a person's pocket or small carrying case. The company's products have been very popular with the public and are sold through many of the cellular phone providers. Information concerning the production and sale of these phones are provided below. Selling Price KIWI TELEPHONE TECHNOLOGY PRODUCTION AND SALES DATA FOR PHONES Variable Cost Per Phone Expected Sales Mix The company's total fixed costs for the year are $500,000. Deluxe Standard $ 75.00 $ 100.00 35.00 45.00 40% 60% REQUIRED: (1) (2) (3) (4) Calculate the company's break even point in total units and the number of units of each type of phone that will need to be sold. Round your answers up to the next whole unit. Calculate the total sales in dollars that the company will need to earn a before tax profit of $50,000. Round your answer up to the next whole dollar. Calculate the total units and the number of units of each type of phone that the company will need to sell in order to earn an after tax profit of $100,000. The company's tax rate is 25%. Round your answers up to the next whole unit. Assume that the company's fixed costs increased by $150,000. Calculate the company's new break even point in sales dollars for each type of phone and in total sales dollars. Round your answers up to the next whole dollar.
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