Consider an Android application design company that incurs variable costs of $1,000 per app produced. The fixed costs for the company amount to $20,000 per year, and the company sells each app for $2000. Draw the profit/loss break even chart and determine break event point in apps, then locate the profit and loss regions?
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Q: 1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00…
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- A Company wants to introduce new mobile phone into the market. The estimated price of each mobile phone is RO 800. The company requires a profit margin of 15% on sales. Calculate a target cost for the new mobile phone.Garmin is thinking of launching a new running watch the allows you to download a Spotify playlist. If launched, sales of a similar Garmin watch witout the music feature is expected to decrease by $100,000 a year. Which of the following is true? This is an externality and should be included This is an externality and should not be included This is an opportunity cost and should be included This is an opportunity cost and should not be included This is an sunk cost and should be included This is an sunk cost and should not be includedEastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit can be anticipated with a demand of 3500 copies? b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook with this value displayed or else you will not receive credit.
- Breakeven Computation Directions: Analyze the given problems and compute for what is being asked. 1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven? 2. Adel and Tony run a small online business specializing in delivering organic fruit and vegetables to the local area. They buy from local farms and package these together in boxes. Each box costs P208.00 and is being sold at P500.00 per box. Other fixed costs incurred each year are as follows: Php Rent of delivery van 4,500 Rent of premises 10,500 Direct wages 10,000 Advertising 2,000 Calculate the break-even point in boxes (unit).Topnotch company uses a Freemium model and has 200,000 users, a 5% conversion rate, and a 10% churn rate. The average cost to serve a Paying User is $100/year and the Annual Revenue/ Paying User is $500/year. The Cost to Support a Free user is negligible. Calculate Retention Rate, Lifetime of a Paying User, ARPPU, ARPU, Number of Paying Users, CLV of a paying User, and Annual Contribution for Topnotch. IMPORTANT: Please include managerial perspectives when answering the question (elaborate what the answer means for the company/firm moving forward).Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $54. Ortega would like a profit of $14 per drive. What target cost Ortega should set to accomplish this objective? Target cost $ per hard drive
- Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $175,000. Variable processing costs are estimated to be $8 per book. The publisher plans to sell single-user access to the book for $54. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,300 copies? For subtractive or negative numbers use a minus sign. -23,200 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,400 to 3,600 copies. (ii) Breakeven appears in the…A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400. Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) Productivity (Revenue per Dollar Input) $ Approach Current Company A Company B $ b. Which option would have the highest productivity in terms of revenue per dollar of input? Company A Company B CurrentPlease donot provide solution in image format and provide step by step format and provide solution asap
- You want to subtract your cost of 250 in cell E6, from your selling price of 400 in cell E5, and have the result in cell E7. How would you do this so you can extend the calculation across your other products?Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cast of manuscript preparation, textbook design, and web-site construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $47. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,200 copies? For subtractive or negative numbers use a minus sign. -23800 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue - total cost yielding a profit of zero. In which interval of demand does breakeven occur? (1) Breakeven appears in the interval of 3,200 to 3,400 copies. (1) Breakeven appears in the interval…Tom uses his computer to calculate the following regression formula:Weekly total costs = $18,791 + ($19.97 * Number of orders per week) Draw the regression line on your graph. Use your graph to evaluate the regression line using the criteria of economic plausibility, goodness of fit, and significance of the independent variable. Is the cost function estimated using the high-low method a close approximation of the cost function estimated using the regression method? Explain briefly.