Total Fixed Costs Factory rent expense: $10,250,000 Production manager salaries: $8,500,000 Insurance expense: $6,000,000 Equipment depreciation expense: $5,350,000 Advertising expense: $5,000,000 Variable Costs Per Unit
Total Fixed Costs
Factory rent expense: $10,250,000
Production manager salaries: $8,500,000
Insurance expense: $6,000,000
Equipment depreciation expense: $5,350,000
Advertising expense: $5,000,000
Variable Costs Per Unit
Battery: $10
Camera: $45
Internal Components: $45
Receiver: $35
Screen: $95
Speaker: $25
Sales Price Per Unit (iPhone): $750
Variable Costs Per Unit
Battery: $10
Camera: $45
Internal Components: $45
Receiver: $35
Screen: $95
Speaker: $25
Sales Price Per Unit (iPhone): $750
2.Total Fixed Costs
Factory rent expense: $10,250,000
Production manager salaries: $8,500,000
Insurance expense: $6,000,000
Equipment depreciation expense: $5,350,000
Advertising expense: $5,000,000
Variable Costs Per Unit
Battery: $10
Camera: $45
Internal Components: $45
Receiver: $35
Screen: $95
Speaker: $25
Sales Price Per Unit (iPhone): $750
?Answer the requirements for each of the followingseparatesituations.
1.If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales.
2(a).Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple doesnotpurchase the machine.
2(b).Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine.
3(a).Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple doesnotincrease advertising expenses.
3(b).Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses.
' e to help assess whether or not to continue to manufacture and sell an older model of the; PM is mode'l'continues to sell well In foreign markets but It worries that xed costspre so larget tit eaub _ Return to question Variable Costs Per Unit Internal 2 Battery Camera Components Receiver Screen Speaker points Sales Price Per Unit iphoneReturn to question 2 points tableau x Answer is complete but not entirely correct. 1. Compute break-even point in units. Numerator: Denominator: E Break-Even Units Fixed costs Contribution margin per unit Break-even units $ 35, 100,000/ $ 495 X E 70,910 units 2. Compute the units of product that must be sold to earn income of $9,000,000. Numerator: Denominator: E Units to Achieve Target Total fixed costs plus target income Contribution margin per unit V E Units to achieve target $ 44,100,000/ $ 495 X E 89,091 units 3. Compute the dollar value of sales that must be sold to earn income of $9,000,000. Numerator: Denominator: Break-Even Dollars Total fixed costs plus target income Contribution margin ratio V Break-even dollars 44, 100,000 66.0% X $ 66,818, 182 McN tableau K Answer the requirements for each of the following separate situations. 2 1. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. points 2(a). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine. 2(b). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed eBook costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 3(a). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. 3(b). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by Ask $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2A Required 2B Required 3A Required 3B If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. Margin of Safety (a) Dollars (b Percent % leau Saved Help Save & Exit Submit Check my work 2 2 points eBook #tableau K . Answer the requirements for each of the following separate situations. Ask 1. If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. 2(a). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does not purchase the machine. Print 2(b). Apple expects sales of 100,000 units in the coming year. It is considering investing in a new machine that will increase its fixed costs by $7,500,000 per year and decrease its variable costs by $40 per unit. Compute income if Apple does purchase the machine. 3(a). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by References $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does not increase advertising expenses. 3(b). Apple expects sales of 100,000 units in the coming year. A marketing executive believes that increasing advertising costs by $4,000,000 will increase Apple's sales volume to 110,000 units. Compute income if Apple does increase advertising expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B If Apple expects sales of 100,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. Margin of Safety (a) Dollars $ 16,500,000 ( b ) Percent 22 % Mc Graw Hill
