Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Section A,B,&C 2. Suppose a marketer of wheel chair, Easy Wheel, Inc., is a new company located in Huntington, West Virginia, has rented a factory

Section A,B,&C image text in transcribed
2. Suppose a marketer of wheel chair, Easy Wheel, Inc., is a new company located in Huntington, West Virginia, has rented a factory in Thailand to manufacture wheel chairs to be marketed to Thai customers. The company's planned production is 40,000 chairs annually. The venture capitalists (from USA and Thailand) had invested $3,000,000 in the company, with an expected for factory building is $500,000, annual executive (in Thailand) salaries are $1,000,000. Raw material per wheel chair costs $30.00 and assembling of a wheel chair costs $15.00 per unit. The company plans to manufacture 50,000 wheel chairs in 2019. The channel of distribution for chairs is as follows: t at 15% in 2005, Annual lease (rent) Easy Wheel Wholesale Medical Supplicr Retailers Final consumers (USA) (Thailand) (Thailand) (Thailand) The wholesale medical suppliers charge 15% markup to retailers, whereas retailers use 10% markup (a) At what price should Easy Wheel sell its wheel chairs to wholesale medical suppliers? You must show your calculations. (b) What will be the price of wheel chair paid by final consumers? You must show your calculations. (c) Suppose, in a given year, Easy Wheel manufactures and sells 20,000 wheel chairs. How much profit or loss would Easy Wheel make? Use fixed and variable costs as given above. You must show your calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Theoretical Foundations For Quantitative Finance

Authors: Luca Spadafora, Gennady P Berman

1st Edition

9813202475, 978-9813202474

More Books

Students also viewed these Finance questions

Question

What are the usual steps followed in adjusting a closed traverse?

Answered: 1 week ago