short answer powerpoint
iikotu
ifeyinwa_project_3_.xlsxquestion 1
| Factory space | ||
| Cost alloacted fixed | 1500000 | $ 5,000 |
| Cost allocated variable | 6000000 | $ 20,000 |
| Component | $ 25,000 | |
| Cost per unit | $ 50,000 | |
| labor | ||
| Cost alloacted fixed | 1500000 | $ 5,000 |
| Cost allocated variable | 8000000 | $ 26,667 |
| Component | $ 25,000 | |
| Cost per unit | $ 56,667 |
Question 2
| Total cost of assemblies | $25,000,000 |
| No. of assemblies per year | 125000 |
| Rate per assembly | $200 |
| No. of assemblies for production of 300 units of Andriod01 (300 units * 180) | 54000 |
| cost of assembly allocated to andriod01 ($200 * 5400) | $10,800,000 |
| Assembly cost of Andriod01 | $10,800,000 |
| No. of units | $300 |
| Assembly cost per unit | $36,000 |
| other cost per unit | $25,000 |
| Total cost per unit of producing andriod01 using activity-based costing | $61,000 |
Question 3
| Units | 300 |
| Fixed cost | $ 4,500,000.00 |
| Average fixed cost per unit | $ 15,000.00 |
| Variable cost per unit | $ 48,000.00 |
| Total cost per unit | $ 63,000.00 |
| Mark up (30%) | $ 18,900.00 |
| Selling price | $ 81,900.00 |
| If we were to apply a 30% mark up on the total cost per unit we will have a selling price of $81,900 for Android01, | |
| Recommendation | |
| For the benefit of company a further analysis should be carried out to in order determine whether this is selling price is competitive in regard to the demand and supply of the like product(s) in the market. | |
Question 4
| Number of units | Variable cost per unit | Variable cost | Fixed cost | TC | MC | Selling price | revenue | MR | TC | TR | Profit | |
| 200 | $ 60,000.00 | $ 12,000,000.00 | $ 4,500,000.00 | $ 16,500,000.00 | $ - 0 | $ 70,000.00 | $ 14,000,000.00 | $ - 0 | $ 16,500,000.00 | $ 14,000,000.00 | $ (2,500,000.00) | |
| 250 | $ 54,000.00 | $ 13,500,000.00 | $ 4,500,000.00 | $ 18,000,000.00 | $ 30,000.00 | $ 66,000.00 | $ 16,500,000.00 | $ 50,000.00 | $ 18,000,000.00 | $ 16,500,000.00 | $ (1,500,000.00) | |
| 300 | $ 48,000.00 | $ 14,400,000.00 | $ 4,500,000.00 | $ 18,900,000.00 | $ 18,000.00 | $ 64,000.00 | $ 19,200,000.00 | $ 54,000.00 | $ 18,900,000.00 | $ 19,200,000.00 | $ 300,000.00 | |
| 350 | $ 46,000.00 | $ 16,100,000.00 | $ 4,500,000.00 | $ 20,600,000.00 | $ 34,000.00 | $ 59,000.00 | $ 20,650,000.00 | $ 29,000.00 | $ 20,600,000.00 | $ 20,650,000.00 | $ 50,000.00 | |
| 400 | $ 45,000.00 | $ 18,000,000.00 | $ 4,500,000.00 | $ 22,500,000.00 | $ 38,000.00 | $ 52,000.00 | $ 20,800,000.00 | $ 3,000.00 | $ 22,500,000.00 | $ 20,800,000.00 | $ (1,700,000.00) | |
| Number of units | MC | MR | ||||||||||
| 200 | $ - 0 | $ - 0 | ||||||||||
| 250 | $ 30,000.00 | $ 50,000.00 | ||||||||||
| 300 | $ 18,000.00 | $ 54,000.00 | ||||||||||
| 350 | $ 34,000.00 | $ 29,000.00 | ||||||||||
| 400 | $ 38,000.00 | $ 3,000.00 | ||||||||||
| Normally the profit maximising output level is that whose marginal cost (MC) equals the (MR); in our case the out put level that brings us closer to that is 350units at a selling price of $59,000,however further analysis | ||||||||||||
| has shown us that at this level the profit will be $50,000 | ||||||||||||
| Recommendation | ||||||||||||
| For optimum results that are effective and efficient the company should consider producing at 300 units at a selling price of $64,000 and the profit will be $300,000 | ||||||||||||
Question 5
| APRIL 20X8 | MAY 20X8 | |
| Production units of Mini Y | 3000 | 3200 |
| Components Cost(variable) | $ 24,000,000.00 | $ 25,600,000.00 |
| Labour Cost (variable) | $ 13,500,000.00 | $ 14,400,000.00 |
| Rent (fixed) | $ 6,000,000.00 | $ 6,000,000.00 |
| Depreciation (fixed) | $ 6,000,000.00 | $ 6,000,000.00 |
| Other (fixed) | $ 2,000,000.00 | $ 2,000,000.00 |
| Total | $ 51,500,000.00 | $ 54,000,000.00 |
| Less depreciation | $ 6,000,000.00 | |
| Cash paid Production Cost | $ 48,000,000.00 | |
| Due to the increase anticipated in the month of May 20X8 the total cost will increase by $2,500,000 | ||
| resulting from changes in the variable costs, as the fixed costs are expected to hold regardless | ||
| of the output level. | ||
| Recommendation | ||
| Inorder to get the cash figure that will be incurred to cover the costs will have to subtract | ||
| the depreciation cost as a it is non-cash item and the cost will be $48,000,000. | ||
Question 6
| MINI X | MINI Y | |
| Units produced | 500 | 600 |
| Joint cost | $ 3,000,000.00 | $ 3,000,000.00 |
| Selling price per unit | $ 3,500.00 | $ 3,800.00 |
| joint cost allocation % | 48% | 52% |
| MINI X | MINI Y | |
| Sales revenue | $ 1,750,000.00 | $ 2,280,000.00 |
| less joint cost | $ (1,438,356.16) | $ (1,561,643.84) |
| Profit | $ 311,643.84 | $ 718,356.16 |
| The profit attributable to the product MINI X is $311,643.84 therefore it is profitable | ||
| Recommendation | ||
| MINI X is a profitable product, hence it is worthy to consider improving its features | ||
| so as to increase its sales volume. | ||
