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The tax is 25% Question 0 (4 points) A company has a product that shows poor profitability and it is therefore considered to stop manufacturing
The tax is 25%
Question 0 (4 points) A company has a product that shows poor profitability and it is therefore considered to stop manufacturing this product. If you do, it is estimated that the company's fixed costs will decrease by a total of SEK 370,000. Based on this information and the information given below, explain how the company's results will change if you choose to close down the production of this product. Answer in the entire SEK thousand and enter the correct sign in front. Based on your financial calculations, also justify what you think the company should make for financial decisions, ie, should they stop making this product or should they let it go? Sales price: SEK 1,300 /pe Variable costs SEK 700 /pc Fixed costs SEK 660 /pc (based on the volume given below) Production and sales volume 2,000 pcs Question 7 (3 points) You work as a consultant and have been commissioned to help a company. The company in question buys and sells various training bags. The following information is taken from one of the departments that manufacture and sell training bags specifically for tennis players, the range consists of one product type, the training bag "Smash-it". Sales price: SEK 600/pc Purchase price: SEK 300 /pc Other variable costs: SEK 100 /pc Distributed fixed cost (based on the volume stated below): SEK 200/pe Cost (based on the volume stated below): SEK 600/pe Profit: SEK 0/pc Sales volume: 12,000 pcs Enter the size of the department's total costs if the sales volume were to increase to 13,000 units. Answer in SEK thousand in integers. Question 0 (4 points) A company has a product that shows poor profitability and it is therefore considered to stop manufacturing this product. If you do, it is estimated that the company's fixed costs will decrease by a total of SEK 370,000. Based on this information and the information given below, explain how the company's results will change if you choose to close down the production of this product. Answer in the entire SEK thousand and enter the correct sign in front. Based on your financial calculations, also justify what you think the company should make for financial decisions, ie, should they stop making this product or should they let it go? Sales price: SEK 1,300 /pe Variable costs SEK 700 /pc Fixed costs SEK 660 /pc (based on the volume given below) Production and sales volume 2,000 pcs Question 7 (3 points) You work as a consultant and have been commissioned to help a company. The company in question buys and sells various training bags. The following information is taken from one of the departments that manufacture and sell training bags specifically for tennis players, the range consists of one product type, the training bag "Smash-it". Sales price: SEK 600/pc Purchase price: SEK 300 /pc Other variable costs: SEK 100 /pc Distributed fixed cost (based on the volume stated below): SEK 200/pe Cost (based on the volume stated below): SEK 600/pe Profit: SEK 0/pc Sales volume: 12,000 pcs Enter the size of the department's total costs if the sales volume were to increase to 13,000 units. Answer in SEK thousand in integersStep by Step Solution
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