# For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economic model. You are tasked to complete several calculations and present your findings to the company stakeholders. You may use any presentation software

## This problem has been solved!

For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economic model. You are tasked to complete several calculations and present your findings to the company stakeholders. You may use any presentation software (Google Slides, Prezi, PowerPoint, etc.)

1. For your first assignment, management has provided the following revenue and cost information:

High-End Set | Economical Set | |||
---|---|---|---|---|

Sales price | $3,500 | per unit | $1,000 | per unit |

Labor | $875 | per unit | $250 | per unit |

Materials | $1400 | per unit | $300 | per unit |

Direct fixed costs | $25,000 | per month | $16,500 | per month |

Allocated fixed costs | $85,000 | per month | $85,000 | per month |

They want a better understanding of their business to make budgeting and sales goals decisions and have asked you to determine their:

- Break-even quantities for each product line
- Break-even quantities to earn $500,000 per year margin on the high-end line (at the current sales price)
- Break-even quantities to earn $300,000 per year margin on the economical line (at the current sales price)

They expect the product lines to fully absorb the costs allocated to them.

Once you have determined these amounts, they have asked that you:

- present the information
- describe how you performed your calculations
- and explain what the results mean

**Related Book For**