Question: please teach and help me answer this question : I have been hired as a team of consultants on a multi-year basis for a global

please teach and help me answer this question : I 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.

I am tasked to complete several calculations and present your findings to the company stakeholders.

kindly see the information provided by management for 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

a)please teach me to have a better understanding of this business to make budgeting and sales goals decisions and

b) please help me to determine this

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

please teach me because they expect the product lines to fully absorb the costs allocated to them.

4) please help me to present the information

5) help me to describe how to perform this calculations

6) kindly teach me on how to explain what the results mean

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!