AC2720 Project

# AC2720 Project - Problem 1 Task 1 Faucet filter Selling...

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Problem 1_ Task 1 Faucet filter: Selling price 80 Variable cost per unit 20 Contribution margin per unit \$60 Pitcher-cum-filter: Selling price 90 Variable cost per unit 25 Contribution margin per unit \$65 Each bundle contains 2 faucet models and 3 pitcher models. So, contribution margin of a bundle \$250 Breakeven point in bundles = Fixed costs/Contribution margin per bundle Breakeven point in units of faucet models and pitcher models is: \$3,780 Faucet models: \$7,560 Pitcher models: \$11,340 Total number of units to breakeven \$18,900 Breakeven point in dollars for faucet models and pitcher models is: Faucet models: \$604,800 Pitcher models: \$1,020,600 Breakeven revenues \$1,625,400 Alternatively, weighted average contribution margin per unit \$50 Breakeven point in units 18900.00 Faucet filter: Pitcher-cum-filter: Breakeven point in dollars Faucet filter: \$604,800 Pitcher-cum-filter: \$1,020,600

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Problem 1_Task 2 Faucet filter: Selling price 80 Variable cost per unit 15 Contribution margin per unit \$65 Pitcher-cum-filter: Selling price 90 Variable cost per unit 14 Contribution margin per unit \$76 Each bundle contains 2 faucet models and 3 pitcher models. So, contribution margin of a bundle \$358 Breakeven point in bundles = Fixed costs/Contribution margin per bundle Breakeven point in units of faucet models and pitcher models is: 3145.2514 Faucet models: 6290.50279 Pitcher models: 9435.75419 Total number of units to breakeven 15726.257 Breakeven point in dollars for faucet models and pitcher models is: Faucet models: \$408,882.68 Pitcher models: \$717,117.32 Breakeven revenues \$1,126,000 Alternatively, weighted average contribution margin per unit \$71.60 Breakeven point in units \$15,731.84 Faucet filter: Pitcher-cum-filter: Breakeven point in dollars Faucet filter: \$408,882.68 Pitcher-cum-filter: \$717,117.32

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Problem 1_Task 3 Let X be the number of bundles for Pure Water Products to be indifferent between the old and Operating income using old equipment 250x-945000 Operating income using new equipment 358x-945000-181400 At point of indifference: 1679.6 bundles Faucet models 3359.2 Pitcher models 5037.6 Total number of units 8396.8 Let x be the number of bundles, 3 sentences with numbers and a Check calculation

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d new production equipment.
Problem 2_Tasks 1, 2, and 3 1 Signings in Process (SIP) April 30, 2010 Author Materials Direct Overhead Total Labor (1) (2) (3) = 80% × (2) (4) Asher \$515 \$975 \$780 \$2,270 Brown 520 1,000 \$800 \$2,320 Sherman 150 200 \$160 \$510 Total \$1,185 \$2,175 \$1,740 \$5,100 2 Cost of Completed Signings (CCS) in April 2010

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