Toyota South Africa is considering the production of a new hybrid vehicle, the Toyota EcoCar. As...

  

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Toyota South Africa is considering the production of a new hybrid vehicle, the Toyota EcoCar. As a consultant specialising in the automotive industry, you have been tasked with assisting Toyota with the cost management and planning for the new vehicle. Toyota has estimated the following costs: Fixed costs Variable costs Selling/Purchase price Anticipated purchase volume a) Suppose Toyota South Africa sells 500 EcoCars in a year; what would its total profit be? [2] b) Calculate the number of EcoCars Toyota South Africa needs to produce to break even. [2] R2,000,000 per year R20,000 per unit R35,000 per unit 500 units Consider the below excerpt of a spend analysis conducted by Toyota South Africa regarding their raw material category. Make two recommendations for improvement to their raw materials category. Supplier Category: Raw materials Auto Parts SA Safe Brake SA LUK Repco SA HOLTS Rad SA BEHR Ech SA Total spend per supplier ZAR 40,000,000 ZAR 20,000,000 ZAR 10,000,000 ZAR 5,000,000 ZAR 5,000,000 Toyota South Africa is considering the production of a new hybrid vehicle, the Toyota EcoCar. As a consultant specialising in the automotive industry, you have been tasked with assisting Toyota with the cost management and planning for the new vehicle. Toyota has estimated the following costs: Fixed costs Variable costs Selling/Purchase price Anticipated purchase volume a) Suppose Toyota South Africa sells 500 EcoCars in a year; what would its total profit be? [2] b) Calculate the number of EcoCars Toyota South Africa needs to produce to break even. [2] R2,000,000 per year R20,000 per unit R35,000 per unit 500 units Consider the below excerpt of a spend analysis conducted by Toyota South Africa regarding their raw material category. Make two recommendations for improvement to their raw materials category. Supplier Category: Raw materials Auto Parts SA Safe Brake SA LUK Repco SA HOLTS Rad SA BEHR Ech SA Total spend per supplier ZAR 40,000,000 ZAR 20,000,000 ZAR 10,000,000 ZAR 5,000,000 ZAR 5,000,000

Answer rating: 100% (QA)

a To calculate the total profit we need to subtract the total cost from the total revenue The total ... View the full answer