Show formula using Excel format B.DEFG.Part 2Answer the following questions according to Table A and Annual Fixed Costs Table. Assume that they only sell the Low Option.10a.How much does it cost to both produce and package one Low Option to Evtel Kitchen Appliances?134.591112How much does producing and selling one unit of Low Option contribute to EvTel Kitchen Appliances?Report the total cost related to the production for a year. (Remark: Do not forget to consider the fixed costs related to production.)13How many Low Option does Evtel Kitchen Appliances need to sell to make a profit of 0 TL, annually? (Remark: Do not round thed.14answer!) H.K3536TABLE ATABLE BAnnual Fixed Costs (TL)Marketing, Selling andDistribution ExpensesLow OptionHigh Option725,000.0037Annually EstimatedAnnually Estimated SalesAdministration Expenses1,250,000.0038 Sales30,000.001,285.0015,000.001,443.0039 Price (TL)$4Price (TL)2$R&D379,000.0040Direct Fixed Costs4,750,000.0041 MaterialsNumber RequiredUnit Costs (TL)MaterialsNumber Required rqaaS42 Stove1172.25Stove1202.2543 Oven1242.15Oven1252.15TAX RATE44 Display Screen45 Driver119.25Display Screen236.24218.10Driver218.1020%46 Electronic Card111.97Electronic CardBluetooth111.9747 Bluetooth111.16111.1648 Fan27.99Fan87.9949 Light Bulb1Light BulbSmart Connectivity4.995.995039.9951 Direct Labor Costs85.3252 Packaging Cost Per49.27Direct Labor Costs10%Increase from LowOption's Direct Labor CostIncrease from LowOption's Packaging Cost53Packaging Cost Per Unit4%54InstructionsAnswers

Contribution margin is the excess of sales per unit over variable cost per unit.

10 11 12 13 14 B D H Part 2 Answer the following questions according to Table A and Annual Fixed Costs Table. Assume that they only sell the Low Option. a How much does it cost to both produce and package one Low Option to Evtel Kitchen Appliances? b How much does producing and selling one unit of Low Option contribute to EvTel Kitchen Appliances? C Report the total cost related to the production for a year. (Remark: Do not forget to consider the fixed costs related to production.) d How many Low Option does Evtel Kitchen Appliances need to sell to make a profit of 0 TL, annually? (Remark: Do not round the answer!) 134.59

10 11 12 13 14 B D H Part 2 Answer the following questions according to Table A and Annual Fixed Costs Table. Assume that they only sell the Low Option. a How much does it cost to both produce and package one Low Option to Evtel Kitchen Appliances? b How much does producing and selling one unit of Low Option contribute to EvTel Kitchen Appliances? C Report the total cost related to the production for a year. (Remark: Do not forget to consider the fixed costs related to production.) d How many Low Option does Evtel Kitchen Appliances need to sell to make a profit of 0 TL, annually? (Remark: Do not round the answer!) 134.59

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Show formula using Excel format

H.
K
35
36
TABLE A
TABLE B
Annual Fixed Costs (TL)
Marketing, Selling and
Distribution Expenses
Low Option
High Option
725,000.00
37
Annually Estimated
Annually Estimated Sales
Administration Expenses
1,250,000.00
38 Sales
30,000.00
1,285.00
15,000.00
1,443.00
39 Price (TL)
$4
Price (TL)
2$
R&D
379,000.00
40
Direct Fixed Costs
4,750,000.00
41 Materials
Number Required
Unit Costs (TL)
Materials
Number Required rqaaS
42 Stove
1
172.25
Stove
1
202.25
43 Oven
1
242.15
Oven
1
252.15
TAX RATE
44 Display Screen
45 Driver
1
19.25
Display Screen
2
36.24
2
18.10
Driver
2
18.10
20%
46 Electronic Card
1
11.97
Electronic Card
Bluetooth
1
11.97
47 Bluetooth
1
11.16
1
11.16
48 Fan
2
7.99
Fan
8
7.99
49 Light Bulb
1
Light Bulb
Smart Connectivity
4.99
5.99
50
39.99
51 Direct Labor Costs
85.32
52 Packaging Cost Per
49.27
Direct Labor Costs
10%
Increase from LowOption's Direct Labor Cost
Increase from LowOption's Packaging Cost
53
Packaging Cost Per Unit
4%
54
Instructions
Answers

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