You are an Industrial Engineer at a prominent motorcycle manufacturing company in Malaysia. The company is...
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You are an Industrial Engineer at a prominent motorcycle manufacturing company in Malaysia. The company is considering launching a new motorcycle model, and you have been tasked with conducting a break-even analysis to assess the financial viability of this new venture. Data for costs and revenue are given in Table 1. Fixed Costs for the Manufacturer / Kos Tetap untuk Pengilang Expense Type / Jenis Perbelanjaan Rent and Utilities/Sewa dan Utilit Employee Salaries/Gaji Pekerja Depreciation / Susut nilai Insurance / Insurans Table 1 / Jadual 1 Jenis Perbelanjaan Cost of Materials / Kos Bahan Direct Labour/Buruh Langsung Variable Overheads / Overhed Berubah Sales Commission/Komisen Jualan Monthly Cost (RM) / Kos Bulanan (RM) 50,000 300,000 150,000 5,000 Variable Costs per Motorcycle Produced / Kos Berubah bagi setiap Motosikal yang Dihasilkan Expense Type / Cost per Motorcycle (RM)/ Kos setiap Motosikal (RM) 6,000 2,500 1,000 500 Revenue from Sales per Motorcycle / Hasil daripada Jualan setiap Motosikal Revenue Type / Jenis Hasil Amount per Motorcycle (RM)/ Amaun per Motosikal (RM) 12,000 Selling Price per Motorcycle / Harga Jualan setiap Motosikal (a) Calculate the break-even point for the Malaysian motorcycle manufacturer. This should involve determining the number of motorcycles that need to be sold to cover both the fixed and variable costs. Provide a detailed explanation of your calculations. (10) (b) Based on your calculations from part (a), draw a break-even chart for the company. Clearly label the fixed and variable cost lines, the revenue line, and the break-even point on the chart. You are an Industrial Engineer at a prominent motorcycle manufacturing company in Malaysia. The company is considering launching a new motorcycle model, and you have been tasked with conducting a break-even analysis to assess the financial viability of this new venture. Data for costs and revenue are given in Table 1. Fixed Costs for the Manufacturer / Kos Tetap untuk Pengilang Expense Type / Jenis Perbelanjaan Rent and Utilities/Sewa dan Utilit Employee Salaries/Gaji Pekerja Depreciation / Susut nilai Insurance / Insurans Table 1 / Jadual 1 Jenis Perbelanjaan Cost of Materials / Kos Bahan Direct Labour/Buruh Langsung Variable Overheads / Overhed Berubah Sales Commission/Komisen Jualan Monthly Cost (RM) / Kos Bulanan (RM) 50,000 300,000 150,000 5,000 Variable Costs per Motorcycle Produced / Kos Berubah bagi setiap Motosikal yang Dihasilkan Expense Type / Cost per Motorcycle (RM)/ Kos setiap Motosikal (RM) 6,000 2,500 1,000 500 Revenue from Sales per Motorcycle / Hasil daripada Jualan setiap Motosikal Revenue Type / Jenis Hasil Amount per Motorcycle (RM)/ Amaun per Motosikal (RM) 12,000 Selling Price per Motorcycle / Harga Jualan setiap Motosikal (a) Calculate the break-even point for the Malaysian motorcycle manufacturer. This should involve determining the number of motorcycles that need to be sold to cover both the fixed and variable costs. Provide a detailed explanation of your calculations. (10) (b) Based on your calculations from part (a), draw a break-even chart for the company. Clearly label the fixed and variable cost lines, the revenue line, and the break-even point on the chart.
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Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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