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Zoran Corporation manufactures and sells a single product; cordless telephones. Zoran is considering upgrading its current manufacturing facilities with more modern equipment. Relevant cost data
Zoran Corporation manufactures and sells a single product; cordless telephones. Zoran is considering upgrading its current manufacturing facilities with more modern equipment. Relevant cost data under the current facility and the upgraded facility is provided below: Current Upgraded Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit Fixed overhead cost in total Selling and administrative expenses: Variable selling expense per unit Fixed selling and administrative costs in total $19.00 $13.00 $33.00 $42,900 $22.00 $8.00 $25.00 $168,400 $5.00 $9,600 $5.00 $9,600 Under either system, Zoran will sell the cordless phones for $125 per phone. Use this information to answer these five questions via selecting values in the drop-down boxes below. $55 What is the contribution margin per phone using the current facility? $65 What is the contribution margin per phone using the upgraded facility? [ Select] What is the current facility's break-even phones? Do not round intermediate calculations, round up your final answer. [ Select ] What is the upgraded facility's break-even phones? Do not round intermediate calculations, round up your final answer. [ Select] At what quantity of phone sales will it start being more profitable for Zoran to use the upgraded facilities? Do not round intermediate calculations, round your final answer to the nearest number of phones
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