Requirement 2. Assume that FFM sells 18,400 desks for $475 each with the costs described for...

 

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Requirement 2. Assume that FFM sells 18,400 desks for $475 each with the costs described for months 5-36, and then incurs no additional costs and generates no additional revenue. Will this have been a profitable venture for FFM? First calculate the new life cycle operating income. (Enter operating losses with parentheses or a minus sign.) Projected Life Cycle Statement of Comprehensive Income Revenues Variable costs: Production Distribution Contribution margin Fixed costs: Design Production Marketing Distribution Life cycle operating income (loss) Data table Months 1-4 Months 5-36 Print Fixed Design costs Production Marketing Distribution Months 37-52 Production Marketing Distribution 1,000 $23 per desk The design cost is for the total period of four months. The fixed costs of production, marketing, and distribution are the expected costs per month. Ignore time value of money. $ Variable $ 850,000 $ 14,000 $220 per desk 2,800 2,300 14,000 1,000 $21 per desk $220 per desk Done X Requirement 2. Assume that FFM sells 18,400 desks for $475 each with the costs described for months 5-36, and then incurs no additional costs and generates no additional revenue. Will this have been a profitable venture for FFM? First calculate the new life cycle operating income. (Enter operating losses with parentheses or a minus sign.) Projected Life Cycle Statement of Comprehensive Income Revenues Variable costs: Production Distribution Contribution margin Fixed costs: Design Production Marketing Distribution Life cycle operating income (loss) Data table Months 1-4 Months 5-36 Print Fixed Design costs Production Marketing Distribution Months 37-52 Production Marketing Distribution 1,000 $23 per desk The design cost is for the total period of four months. The fixed costs of production, marketing, and distribution are the expected costs per month. Ignore time value of money. $ Variable $ 850,000 $ 14,000 $220 per desk 2,800 2,300 14,000 1,000 $21 per desk $220 per desk Done X

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Requirement 1 Preparation of the Projected life cycle statement of compr... View the full answer