AC2720_Final_Project

# AC2720_Final_Project - Problem 1 Task 1 Faucet filter...

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Problem 1_ Task 1 Faucet filter: Selling price Variable cost per unit Contribution margin per unit Pitcher-cum-filter: Selling price Variable cost per unit Contribution margin per unit Each bundle contains 2 faucet models and 3 pitcher models. So, contribution margin of a bundle Breakeven point in bundles = Fixed costs/Contribution margin per bundle Breakeven point in units of faucet models and pitcher models is: Faucet models: Pitcher models: Total number of units to breakeven Breakeven point in dollars for faucet models and pitcher models is: Faucet models: Pitcher models: Breakeven revenues Alternatively, weighted average contribution margin per unit Breakeven point in units Faucet filter: Pitcher-cum-filter: Breakeven point in dollars

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Faucet filter: Pitcher-cum-filter:

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Problem 1_Task 2 Faucet filter: Selling price Variable cost per unit Contribution margin per unit Pitcher-cum-filter: Selling price Variable cost per unit Contribution margin per unit Each bundle contains 2 faucet models and 3 pitcher models. So, contribution margin of a bundle Breakeven point in bundles = Fixed costs/Contribution margin per bundle Breakeven point in units of faucet models and pitcher models is: Faucet models: Pitcher models: Total number of units to breakeven Breakeven point in dollars for faucet models and pitcher models is: Faucet models: Pitcher models: Breakeven revenues Alternatively, weighted average contribution margin per unit Breakeven point in units Faucet filter: Pitcher-cum-filter: Breakeven point in dollars Faucet filter: Pitcher-cum-filter:

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Problem 1_Task 3 Let be the number of bundles for Pure Water Products to be indifferent between the old and n Operating income using old equipment Operating income using new equipment At point of indifference: Faucet models Pitcher models Total number of units Let x be the number of bundles, 3 sentences with numbers and a Check calculation

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new production equipment.
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