Reference no: EM13994213
3F PLC manufactures an executive office chair, which has proved to be very popular in the ADDIS market. The management team is considering the company's operating plan for the forthcoming year and has asked for your assistance in evaluating a number of scenarios. The budgeted selling price for each chair is Birr 200, the variable cost per unit is Birr 120 and the total expected fixed costs are Birr 8,000,000.
Requirement
(i) Determine the breakeven point in units and sales revenue.
(ii) Determine the operating profit earned, if 200,000 chairs are sold in the forthcoming year.
(iii) If 200,000 chairs are sold in the forthcoming year, by what percentage could the variable costs per unit increase before the company would generate an operating loss.
(iv) The company has the option to produce a second product throughout the forthcoming year. This second product, a supreme office chair, would have a selling price of Birr 300 and variable costs per unit of Birr 140. It is expected that producing a second product would increase the total fixed costs of the business to Birr 12,000,000. It is planned that sales of the supreme chair will make up 35% of the mix of total sales.
Draw the lewis structure for so2
: Draw the Lewis structure for SO2. Howmany single bonds, double bonds, triplebonds, and unshared pairs of electrons areon the central atom, in that order?1. 2, 1, 0, 02. 0, 1, 1, 03. 3, 0, 0, 14. 4, 0, 0, 05. 1, 0, 1, 06. None of these7. 1, 1, 0, 18. ..
|
Find the minimum value of coefficient of static friction
: The center of the coin is 16 cm from the turntable axis. If the coin does not slip, what is the minimum value of the coefficient of static friction between the coin and the turntable surface?
|
An equilibrium process
: Question 1 In an equilibrium process, the concentrations of products and of reactants are equal. True False
|
Kevin brantly is a new hire in the controllers office
: Fleming Home Products introduced a new line of commercial awnings in 2010 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to approximate 3% of sales.
|
Determine the breakeven point in units and sales revenue
: Determine the breakeven point in units and sales revenue. Determine the operating profit earned, if 200,000 chairs are sold in the forthcoming year. If 200,000 chairs are sold in the forthcoming year, by what percentage could the variable costs per u..
|
What distance x should the spring be compressed
: If the goal is to have the ball come to a complete stop at the top of the ramp (0.35 m from the base, what distance "x" should the spring be compressed?
|
Why it is problematic for some a prescription cream
: why it is problematic for some a prescription cream to get spread on the outside of a jar during the packaging process.
|
Midnight kitchenware produces high-end blenders for
: Midnight Kitchenware produces high-end blenders for commercial kitchens. They have the following information available about their inventory levels at the end of 2014.
|
How should skillsoft have treated the settlement
: Relying on the information provided by the press release, re-create the journal entry SkillSoft recorded for the settlement.
|