Reference no: EM132468669
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.
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
Question a) please teach me to have a better understanding of this business to make budgeting and sales goals decisions and
Question b) please help me to determine this
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)
Question c) please teach me because they expect the product lines to fully absorb the costs allocated to them.
Question d) please help me to present the information
Question e) help me to describe how to perform this calculations
Question f) kindly teach me on how to explain what the results mean