) Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers Applehead ships to its customers FOB shipping point Applehead is seeking to increase its operating profit as much as possible If it makes no changes in its operations, the company expects the following for the coming year of units sold 30,000 Price $300 per unit Shipping costs $ 2 per unit Cost of merchandise $160 per unit Rent of facilities and equipment $ 1,000,000 Managerial and administrative salaries $ 1,500,000 Knowing that the company wishes to increase its operating profit, Maria Garcia, the marketing manager, says I think we should make 2 changes first, reduce our price to $290 and, second, we should begin to ship FOB destination If we take these actions, I estimate we will increase the number of units sold to 32,500 On the spreadsheet provided, prepare contribution margin income statements to analyze each of the 2 possibilities for the coming year, namely (14 Points) Applehead makes no changes Applehead adopts Garcias proposal Given Appleheads goal of maximizing its operating profit, based solely on your calculations, should it make the change that the marketing manager suggests Why or why not Answer in about a sentence in the space provided on the spreadsheet (6 points) For question 2a Adopt Marketing Make no changes Managers Proposal Total Computation Total Computation Sales Variable Costs Contribution Margin Fixed Costs Operating Profit For question 2b c If the company does not adopt Garcias proposals, how many EyePods (units) would it need to sell in order to break even Show all work in the space provided (5 points) d If the company did not adopt Garcias proposals and actually sells the 30,000 units at $300 each, what is its margin of safety, expressed as a percent Show all work in the space provided (round to second decimal places) (5 points)

The Answer is in the image, click to view ...

Question: ). Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead

). Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB shipping point. Applehead is seeking to increase its operating profit as much as possible. If it makes no changes in its operations, the company expects the following for the coming year.

# of units sold 30,000

Price $300 per unit

Shipping costs $ 2 per unit

Cost of merchandise $160 per unit

Rent of facilities and equipment $ 1,000,000

Managerial and administrative salaries $ 1,500,000

Knowing that the company wishes to increase its operating profit, Maria Garcia, the marketing manager, says I think we should make 2 changes: first, reduce our price to $290 and, second, we should begin to ship FOB destination. If we take these actions, I estimate we will increase the number of units sold to 32,500.

On the spreadsheet provided, prepare contribution margin income statements to analyze each of the 2 possibilities for the coming year, namely (14 Points)
Applehead makes no changes
Applehead adopts Garcias proposal
Given Appleheads goal of maximizing its operating profit, based solely on your calculations, should it make the change that the marketing manager suggests? Why or why not? Answer in about a sentence in the space provided on the spreadsheet. (6 points)

For question #2a
			Adopt Marketing
	Make no changes	Managers Proposal
	Total	Computation	Total	Computation
Sales
Variable Costs
Contribution Margin
Fixed Costs
Operating Profit
For question #2b:

c. If the company does not adopt Garcias proposals, how many EyePods (units) would it need to sell in order to break even? Show all work in the space provided. (5 points)

d. If the company did not adopt Garcias proposals and actually sells the 30,000 units at $300 each, what is its margin of safety, expressed as a percent? Show all work in the space provided. (round to second decimal places) (5 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Sketch the molecular orbital energy level diagram for IF and deduce its ground-state electron configuration. Is IF likely to have a shorter bond length than IF or IF + ?

Instructions: Put your answers in the spaces provided. Formula: BEP = FC UCM BEP(TP) = (FC + TP) UCM BEP = FC CM ratio MOS = S - BEPS MOS = (S - BEPS) S x % MOS = (S-BEPS) USP RI = IO - (% X IA) ROI...

accounting and full computations Page ( a > ms 2. (30 points). Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail...

accounting and need help showing all computations c. What is the advantage of using ROI rather than the dollar amount of income om operations to evaluate the performance of a division? (4 points) d....

2. (30 points). Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB...

Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB destination. Applehead...

2. (30 points). Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB...

Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB shipping point....

I showed some work in the photos, am I correct and on the right track? Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail...

In 2019, Bob collected $150,000 on his deceased wife's life insurance policy. The policy was purchased by his wife's employer under a group policy. Bob's wife had included $5,000 in gross income from...

Show that Equation 3.43 is indeed the solution for critical damping by assuming a solution of the form x(t) = y(t) exp( t) and determining the function y(t).

Which of the following is NOT one of the components of Information Systems? The collection of beliefs, expectations and values shared by the members of an organization The steps involved in...

Given the series RLC circuit in fig 11.36 if R=10ohm , find the values of L and C such that the network will have a resonant frequency of 100 kHz and a bandwidth of 1kHz. wW V(t)

Computational metrology deals with algorithms for measuring things, such as manufactured parts, and one of the standard algorithms is to determine the flatness of an edge of a manufactured part based...

Describe some bargaining interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or downstream customers), or between internal...

Using Exhibit 28.4 as a guide, describe the computation of a fiduciary entitys accounting income, taxable income, and distributable net income. Exhibit 28.4 EXHIBIT 28.4 Accounting Income,...

Find two maximum matchings for the bipartite graph of Figure 16.11a that are different from the maximum matching of Figure 16.11b. G: H: X Y Y

Why were some Amazon employees against forming a union, as noted in the case? Multiple Choice Managers in the organization were coached to avoid bias and discrimination. They were impressed with the...

Is it true, as Jack Carter claims, that Virtually all our workers are women or minority members anyway, so no one can come in here and accuse us of being discriminatory?

Given the fact that each of its stores has only a handful of employees, is her company covered by equal rights legislation?

MyManagementLab onlycomprehensive writing assignment for this chapter.