2. Below are past 3 months production activities and cost information of MDB Company: Units produced...

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2. Below are past 3 months production activities and cost information of MDB Company: Units produced Month Total Costs $169000 17000 15000 160000 14000 152000 January February March Required: A. Formulate MDB Company total cost equation using the high-low method. B. MDB sells its product at $10.99 per unit. If MDB intend to maintain the selling price of $10.99/unit in the coming April month, how many units would MDB need to sell to break-even? And how many units would MDB need to sell to generate an after-tax profit of $1,000 (assume MDB's tax rate is 20%). C. Plot the break-even graph and indicate: fixed costs; profit/loss region; BEQ and BE sales $; total cost and total revenue line and equation D. MDB sales manager forecasted April sales to decline to 10400 units due to increase competition. The sales manager forecasted that an increase advertising of $4,000/month will boost April sales by 10%. Prepare a cost/benefit analysis if additional advertising is approved. Do you recommend the additional $4,000 on advertising for April and explain your decision? 2. Below are past 3 months production activities and cost information of MDB Company: Units produced Month Total Costs $169000 17000 15000 160000 14000 152000 January February March Required: A. Formulate MDB Company total cost equation using the high-low method. B. MDB sells its product at $10.99 per unit. If MDB intend to maintain the selling price of $10.99/unit in the coming April month, how many units would MDB need to sell to break-even? And how many units would MDB need to sell to generate an after-tax profit of $1,000 (assume MDB's tax rate is 20%). C. Plot the break-even graph and indicate: fixed costs; profit/loss region; BEQ and BE sales $; total cost and total revenue line and equation D. MDB sales manager forecasted April sales to decline to 10400 units due to increase competition. The sales manager forecasted that an increase advertising of $4,000/month will boost April sales by 10%. Prepare a cost/benefit analysis if additional advertising is approved. Do you recommend the additional $4,000 on advertising for April and explain your decision?

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A Formulating the total cost equation using the highlow method Step 1 Identify the highest and lowest activity levels and their corresponding costs Hi... View the full answer