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STEP: 2 of 4 Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like

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STEP: 2 of 4 Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an intial investment of 5$20,000,000 (Singapore dollars). Kittle Co managers have also provided you with forecasted expense data, induding variable cost per unit, total variable cost, annual tease experise, depreciation, as well as other fixed annual overhead expense, over the next four years. The following table shows the forecasted expense data along side the previous forecasts provided by Kattle management. Complete row 9 of the table, filling in the total expense for the project for each of the 4 years Year 0 Year 2 Ye 100.0 1. Demand Year 1 60,000 units 5$350 S521,000,000 60,000 units $$350 Year 3 100,000 units S$360 S$35,000,000 2.Price per Unit S 5538 S521,000,000 3. Total Revenue S$200 35250 55200 S 5525 4. Variable Cost Per Unit Udla dong side the previous forecasts provided by Katiemanagement Complete row 9 of the table, filling in the total expense for the project for each of the 4 years Year 0 Year 2 60,000 units 1. Demand 2. Price per Unit 3. Total Revenue Year 1 60,000 units S$350 S$21,000,000 Year 3 100,000 units S5360 5636,000,000 Ye 100,9 si 5538 S$200 S$ 12,000,000 4. Variable Cost Per Unit 5. Total Variable Cost 6. Annual Lease Expense 7. Other Fixed Annual Expense 8. Noncash Expense (Depreciation) 9. Total Expense S$350 S$21,000,000 S$200 S$12,000,000 S$1,000,000 S$1,000,000 S$2,000,000.00 551,000,000 S$1,000,000 S$2,000,000.00 55250 S$25,000,000 S$1,000,000 S$1,000,000 S$2,000,000.00 SI S$26. 5511 $$1,6 552,00 SS 55 55 adta alongside the previous forecasts provided by the management of the table, filling in the total expense for the project for each of the 4 years. Year 0 Year 2 60,000 units S$350 5$21,000,000 Year 4 100,000 units S380 S$38,000,000 Per Unit Year 1 60,000 units S$350 S$21,000,000 S$200 S$12,000,000 S$1,000,000 S$1,000,000 S$2,000,000.00 S$200 S$12,000,000 Cost * Expense Annual Expense Year 3 100,000 units 56360 S$36,000,000 S$250 S$25,000,000 S$1,000,000 $$1,000,000 S$2,000,000.00 5$1,000,000 S$1,000,000 S$2,000,000.00 S5260 S$25,000,000 5$1,000,000 551,000,000 S$2,000,000.00 ense SS SS Ss TOTALSCORE=14

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