Reference no: EM1347453
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relates to period just ended when the company manufactured and sold 42,000 speaker sets:
Sales $3,360,000
Variable Costs 840,000
Fixed Costs 2,280,000
Management is considering relocating its manufacturing facilities to Northern Mexico to reduce costs. Variable costs are expected to average $18 per set; annual fixed costs are anticipated to be $1,984,000. (Ingors income taxes)
1. Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
2. Determine the break even point in speaker sets if operations are shifted to Mexico
3. Assume that management desires to achieve the Mexican break even point; however, operations remain in the United States.
a) If variable costs remain constant, what must management do to fixed costs? By how much must fixed costs change?
b) If fixed costs remain constant, what must management do to the variable cost per unit? By how much must unit variable cost change?
4. Determine the impact (increase, decrease, or no effect) of the following operating changes.
a) Effect of an increase in direct material costs on the break-even point
b) Effect of an increase in fixed administration costs on the unit contribution margin.
c) Effect of an increase in the un it contribution margin on net income.
d) Effect of an decrease in the number of units sold on the break even point.
|
Evaluating proposals with help of cvp analysis
: Phonetronix is the small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They've three different proposals to evaluate.
|
|
Illustrate what is approximately the maximum amount
: Illustrate what is approximately the maximum amount the firm is willing to pay to be allowed to use more units of input x, for small.
|
|
Determine the actual bits sent by the sender
: Determine the actual bits sent by the sender? Include some idleness bits before and after the frame. Let bit-stuffing (also known as bit-insertion).
|
|
Calculate bad debt expense
: Amy Jo's machines had adjusted account balances in accounts receivable of $311,000 and $970 in allowance for uncollectible accounts.
|
|
Cvp analysis of advanced electronics
: Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relates to period just ended when the company manufactured and sold 42,000 speaker sets:
|
|
Create a plot of a cubic spline fit
: Create a plot of a cubic spline fit of following data with natural end conditions: x 0 100 200 400f(x) 0 0.82436 1.00000 0.73576. compare the plot with the following equation which was used to create data.
|
|
Cvp analysis of plainfield bakers
: Plainfield Bakers manufactures and sells the popular line of fat free cookes under name Aunt May's cookies. The process Plainfield employs to manufacturer the cookies is labor-intensive; it relies heavily on direct labor.
|
|
Balance sheet under long term liabilities
: ACME Corporation fiscal year ends on December 31st. At the end of 1st quarter on March 31, ACME owes $40,000 on a vehicle loan that matures in three (3) years.
|
|
Question regarding the cvp ananlysis
: Suppose a fixed cost of $900, a variable cost of $4.50, and selling price of $5.50. Find out the break even point? How many units should be sold to make a profit of $500.? How many units should be sold to average $.0.25 profit per unit? .50 per un..
|