Question 2 Jack Knife Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42000 speaker sets: Sales $3,360,000 Variable costs $840,000 Fixed costs $
PLEASE ANSWER QUESTION A, B & C. NOT PUT IN EXCEL
Question 2
Jack Knife Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42000 speaker sets:
|
Sales |
$3,360,000 |
|
Variable costs |
$840,000 |
|
Fixed costs |
$2,280,000 |
Management is considering relocating its manufacturing facilities to northern Cuba to reduce costs. Variable costs are expected to average $18 per set; annual fixed costs are anticipated to be $1,984,000.
Required:
A. Calculate the company’s current income and determine the level of dollar sales needed to double that (Assuming operations remain in Jamaica).
B. Determine the break-even point in speaker sets if operations are shifted to Cuba.
C. Using an excel sheet, prepare the breakeven chart if operations are shifted to Cuba
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