INSTRUCTIONS

$1.$ This Assignment weighs $10\%$ towards the final grade.

$2.$ This is an open$-$book individual assignment.

$3.$ Your answer MUST be completed on a spreadsheet $($Microsoft Excel File$),$ using Excel built$-$in Formulasand Functions, NOT a Calculator.

$4.$ Your answer $($Microsoft Excel File$)$ must be submitted$/$uploaded on the course Blackboard by $11$:$59$ pm Monday, November $25,2024.$

$5.$ NO DEADLINE EXTENSION!

$6.$ LATE submissions will NOT be accepted$/$graded$.$

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TechNova Mobile was founded in $2020$ by Ahmed Al Mansoori and Fatima Al Suwaidi, two pioneering entrepreneurs in the UAE. Their vision was to develop a local mobile technology company that would meet the needs of both high$-$end users and those seeking budget$-$friendly devices. The company is headquartered in Dubai, leveraging the UAE$$s position as a tech hub to fuel its growth.

TechNova Mobile quickly gained a reputation for delivering reliable, high$-$performance mobile phones designed with both functionality and affordability in mind. The brand$$s products are known for their balance of advanced features and sleek, minimalist design, making it competitive in the Middle Eastern market and abroad.

TechNova Mobile manufactures and sells two flagship mobile models:

Model $1$: A performance$-$oriented smartphone with high processing power, advanced camera systems $($dual$-$camera technology$),$ and large storage capacity. It is marketed towards tech enthusiasts and professionals who rely on their mobile phones for productivity, creativity, and entertainment.

Model $2$: A budget$-$friendly smartphone focusing on essential features and simplicity. Designed for users who need reliable, everyday functionality at an affordable price, it is popular among students and price$-$conscious consumers.

For $2025,$ TechNova Mobile is projected to sell $15,000$ units of Model $1$ and $10,000$ units of Model $2.$ The expected selling prices for each will be $$250$ for Model $1$ and $$200$ for Model $2,$ respectively, providing a strategic pricing structure to cater to different market segments.

Each mobile model requires five core components:

$-$ Camera $($Model $1$ uses $2$ cameras, while Model $2$ uses $1$ camera$)$

$-$ Keypad

$-$ Screen

$-$ Frame

$-$ Motherboard

The component prices are as follows:

$-$ Camera: $$15$

$-$ Keypad: $$10$

$-$ Screen: $$20$

$-$ Frame: $$3$

$-$ Motherboard: $$12$

Exceptionally, TechNova will have a beginning inventory of $3,000$ items of each component at the following costs:

$-$ Camera: $$12\mathrm{.}50$

$-$ Keypad: $$9$

$-$ Screen: $$18$

$-$ Frame: $$2\mathrm{.}75$

$-$ Motherboard: $$11\mathrm{.}50$

The company maintained an efficient production system where no ending inventory of components or finished goods was necessary, enabling a lean manufacturing process to minimize waste and optimize production flow.

Model $1$ and Model $2$ require $5\mathrm{.}5$ hours of direct labor per unit to manufacture each. The labor cost is $$5\mathrm{.}00$ per hour, meaning that labor costs per unit amount to $$27\mathrm{.}50.$

In addition, overhead is allocated at $$15$ per direct labor hour, bringing the total overhead per unit to $$82\mathrm{.}50.$

By $2025,$ TechNova Mobile will become a well$-$recognized brand in the Middle East, expanding into other GCC markets and establishing distribution channels in Asia and Africa. The company$$s strategy focuses on providing high$-$quality products at competitive prices while leveraging the brand$$s local roots to appeal to consumers in established and emerging markets.

TechNova Mobile aims to meet the growing demand for smartphones by offering a premium option $($Model $1)$ and an affordable alternative $($Model $2),$ allowing it to capture multiple customer segments. By balancing cost$-$effective manufacturing and innovative product development, TechNova continues to strengthen its position in the mobile technology industry.

Required:

Prepare the following budgets:

$1.$ Sales Budget

$2.$ Components $($Purchased Material$)$ Budget

$3.$ Direct Labor Budget

$4.$ An overhead Budget

$5.$ Budgeted $($partial$)$ income statement till the $$Gross Profit Line$$