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.
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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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