Analysis of medical equipment manufacturing costs

Reference no: EM133465670

Assignment:

Read the Case Study: Indirect Cost Analysis of Medical Equipment Manufacturing Costs at the end of your text. Study the information provided in the Case Study.

This project entails the following:

Use traditional indirect cost allocations to verify Arnie's cost and price estimates. Support your conclusions with calculations.
Use any method you prefer to estimate the indirect cost allocation and total cost for each model. Support your estimations with calculations.
If the prices and number of units sold are the same next year (750,000 standard and 150,000 premium), and all other costs remain constant, determine the profit from PS6 using the traditional indirect cost allocation method.
What price should Health Care Services charge next year based on a 10% markup over cost? What is the total profit from PS6 predicted to be if sales hold steady?
Comment on the production manager's prediction of indirect costs and the two reasons given to not produce the premium version of PS6. Is this valid? Why or why not?

Reference no: EM133465670

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