RM 2500 35 53 First Month of Sales Development Cost RM 430,500 Fixed Costs Prototype Phase 57 61 65 Manufacturing Phase 69 First Month of Profit Product Table 5.2: Break-even analysis for the project based on manufacturing 500 units per year RM Fixed Costs (for 500 units, per annum) Business Lease 60,000 Property Taxes 22,000 Insurance 18,000 Utilities 3,000 Development Cost 2,500 Executive Salaries 25,000 On-site Equipment 150,000 Manufacturing 80,000 Post-processing 40,000 Maintenance 30,000 Total Fixed Cost 430,500 Materials 4,000 Labour 6,000 Manufacturing Maintenance 5,000 1,500 Overhead 750 Logistics 500 Total Variable Cost per Unit 17,750 Break Even Selling Price per Unit 25,000 Profit (Selling Price - Variable 7250 Cost) per Unit Units to Break Even Profit Targets Units to generate RM50,000 profit and RM 100k profit respectively 60 67 & 74
RM 2500 35 53 First Month of Sales Development Cost RM 430,500 Fixed Costs Prototype Phase 57 61 65 Manufacturing Phase 69 First Month of Profit Product Table 5.2: Break-even analysis for the project based on manufacturing 500 units per year RM Fixed Costs (for 500 units, per annum) Business Lease 60,000 Property Taxes 22,000 Insurance 18,000 Utilities 3,000 Development Cost 2,500 Executive Salaries 25,000 On-site Equipment 150,000 Manufacturing 80,000 Post-processing 40,000 Maintenance 30,000 Total Fixed Cost 430,500 Materials 4,000 Labour 6,000 Manufacturing Maintenance 5,000 1,500 Overhead 750 Logistics 500 Total Variable Cost per Unit 17,750 Break Even Selling Price per Unit 25,000 Profit (Selling Price - Variable 7250 Cost) per Unit Units to Break Even Profit Targets Units to generate RM50,000 profit and RM 100k profit respectively 60 67 & 74
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
Related questions
Question
100%
Fill the cash flow diagram for me, 53, 57, 61, 65, 69.
The numbers on the figure above are calcualted on average based on the capability of the designated facility to produce 500 units of product per year. Dividing this number by 12, the monthly production quota is found to be 42 units. As such, a maximum of 42 units can be sold per month when there is no stockpile of products. The associated profit for each month is then calculated to be RM_________ which is listed as cash outflows in the figure above, which arrives at a profit in 5 months after manufacturing begins, which is the 69th week after the start of the project.
Transcribed Image Text:RM 2500
35
53
First Month of Sales
Development Cost
RM 430,500
Fixed Costs
Prototype Phase
57
61
65
Manufacturing Phase
69
First Month of Profit
Transcribed Image Text:Product
Table 5.2: Break-even analysis for the project based on
manufacturing 500 units per year
RM
Fixed Costs (for 500 units, per
annum)
Business Lease
60,000
Property Taxes
22,000
Insurance
18,000
Utilities
3,000
Development Cost
2,500
Executive Salaries
25,000
On-site Equipment
150,000
Manufacturing
80,000
Post-processing
40,000
Maintenance
30,000
Total Fixed Cost
430,500
Materials
4,000
Labour
6,000
Manufacturing
Maintenance
5,000
1,500
Overhead
750
Logistics
500
Total Variable Cost per Unit
17,750
Break Even
Selling Price per Unit
25,000
Profit (Selling Price - Variable
7250
Cost) per Unit
Units to Break Even
Profit Targets
Units to generate RM50,000 profit
and RM 100k profit respectively
60
67 & 74
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Elements Of Electromagnetics
Mechanical Engineering
ISBN:
9780190698614
Author:
Sadiku, Matthew N. O.
Publisher:
Oxford University Press
Mechanics of Materials (10th Edition)
Mechanical Engineering
ISBN:
9780134319650
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Thermodynamics: An Engineering Approach
Mechanical Engineering
ISBN:
9781259822674
Author:
Yunus A. Cengel Dr., Michael A. Boles
Publisher:
McGraw-Hill Education
Elements Of Electromagnetics
Mechanical Engineering
ISBN:
9780190698614
Author:
Sadiku, Matthew N. O.
Publisher:
Oxford University Press
Mechanics of Materials (10th Edition)
Mechanical Engineering
ISBN:
9780134319650
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Thermodynamics: An Engineering Approach
Mechanical Engineering
ISBN:
9781259822674
Author:
Yunus A. Cengel Dr., Michael A. Boles
Publisher:
McGraw-Hill Education
Control Systems Engineering
Mechanical Engineering
ISBN:
9781118170519
Author:
Norman S. Nise
Publisher:
WILEY
Mechanics of Materials (MindTap Course List)
Mechanical Engineering
ISBN:
9781337093347
Author:
Barry J. Goodno, James M. Gere
Publisher:
Cengage Learning
Engineering Mechanics: Statics
Mechanical Engineering
ISBN:
9781118807330
Author:
James L. Meriam, L. G. Kraige, J. N. Bolton
Publisher:
WILEY