A company is considering the launch of a new 5G mobile phone. Experience from the sale of previous models has shown that the expected life of the new model is four years and life cycle sales will total 25,000,000 units. ...
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A car manufacturer has been experiencing financial difficulties over the past few years. Sales have reduced significantly as a result of the worldwide economic recession. Costs have increased due to quality issues that led to a recall of some models of its cars. Production volume last year was 50 000 cars and it is expected that this will increase by 4% per annum each year for the next five years. The company directors are concerned to improve profitability and are considering two potential investment project
a) Calculate the breakeven point in units, based on the original budget; ( 2 marks) b) Calculate the profits and breakeven points which would result from each of the two alternatives and compare them with the original budget. (13 marks) c) Summaries your recommendation in the for a memo to the managing director of Gerard Limited. ( 5 marks ) (Total 20 marks)
Questions 1 Access Ltd manufactures and sells a single product X. the standard unit cost details of which are as follows: NS Direct Materials 65 Direct Wages 45 Variable Overhead 30 The Budgeted monthly fixed production overheads are 545.000. The budgeted output per month is 3.000 units. The product has a standard selling price of 5200 per unit The actual production and sales for the two months were
You must analyze a potential new product–a caulking compound that Cory Mateials’ R&D people developed for use in the residential construction industry. Cory’s marketing manager thinks the company can sell 115,000 tubes per year for 3 years at a price of $3.25 each, after which the product will be obsolete
Brown Ltd received a special offer to produce Product Brown from a supplier that is willing to pay N$700, a price which is 20% less than the normal market value. The order requires the following material: Kente P. Brown Ltd requires 2 meters of Kente P. The company currently has 3 meters in stock, which were purchased at a price of N$290 per meter. The company uses this material on a regular basis. Brown Ltd now purchases this material from a Zambian supplier, at a purchase price of N$300 per meter. The supplier offers a 20% discount for orders in quantities beyond 10 meters, and Brown Ltd always places their orders over this quantity.
Brown Ltd received a special offer to produce Product Brown from a supplier that is willing to pay N$700, a price which is 20% less than the normal market value. The order requires the following material: Kente P. Brown Ltd ...