TABLE A Low Option Estimated Sales 30.000,00 Price 1.399,00 Number Required Unit Costs 169,45 236,41 Materials Stove 1 t Oven Display Screen 1 t 2 t 23,10 16,00 12,25 11,30 Driver Electronic Card Bluetooth 1 t Fan Light Bulb 2 t 8,00 4,25 Direct Labor Costs Packaging Cost Per ut 80,19 48,50

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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TABLE A
TABLE B
Annual Fixed Costs
Marketing, Selling And Distribution
Expenses
Low Option
High Option
も
650.000,00
Estimated Sales
30.000,00
Estimated Sales
15.000,00
Administration Expenses
も
1.000.000.00
R&D
Direct Fixed Costs
Price
も
1.399,00
Price
も
1.449,00
も
400.000,00
も
4.500.000,00
Number Required
Number Required
Unit Costs
Materials
Unit Costs
Materials
Stove
も
169,45
Stove
も
169,45
236,41
TAX RATE
1 t
1 t
2 t
1 t
Oven
236.41
Oven
Display Screen
も
Display Screen
2 t
2 t
35,00
16,00
23,10
Driver
16,00
Driver
20%
Electronic Card
12,25
Electronic Card
12,25
Bluetooth
1 t
11,30
Bluetooth
も
11.30
2 t
1 t
Fan
8,00
Fan
|も
8,00
Light Bulb
Smart Connectivit
Light Bulb
4,25
2 t
4,25
19,03
Direct Labor Costs
も
80,19
Direct Labor Costs
Packaging Cost
Packaging Cost Per U t
48,50
11%
Increase from LowOption's Direct Labor Cost
Per Unit
5%
|Increase from LowOption's Packaging Cost
Transcribed Image Text:TABLE A TABLE B Annual Fixed Costs Marketing, Selling And Distribution Expenses Low Option High Option も 650.000,00 Estimated Sales 30.000,00 Estimated Sales 15.000,00 Administration Expenses も 1.000.000.00 R&D Direct Fixed Costs Price も 1.399,00 Price も 1.449,00 も 400.000,00 も 4.500.000,00 Number Required Number Required Unit Costs Materials Unit Costs Materials Stove も 169,45 Stove も 169,45 236,41 TAX RATE 1 t 1 t 2 t 1 t Oven 236.41 Oven Display Screen も Display Screen 2 t 2 t 35,00 16,00 23,10 Driver 16,00 Driver 20% Electronic Card 12,25 Electronic Card 12,25 Bluetooth 1 t 11,30 Bluetooth も 11.30 2 t 1 t Fan 8,00 Fan |も 8,00 Light Bulb Smart Connectivit Light Bulb 4,25 2 t 4,25 19,03 Direct Labor Costs も 80,19 Direct Labor Costs Packaging Cost Packaging Cost Per U t 48,50 11% Increase from LowOption's Direct Labor Cost Per Unit 5% |Increase from LowOption's Packaging Cost
EvTel Kitchen Appliances accepts the offer from the Speakers department, they will adjust their production levels accordingly. Firstly, EvTel decided to produce only Low Option. Consider all of the production levels, sales, and
production costs in Table A, answer the following questions. (Warning: EvTel Kitchen Appliances produces only Low Option for this part)
2
a)
How much does it cost to produce and package one Evtel HighSound Combo Low Option?
b)
How much does producing and selling one HighSound Combo Low Option contribute to EvTel Kitchen Appliances' profit?
c)
Report the total yearly fixed cost of EvTel Kitchen Appliances.(Hint: Cost tables are given below)
d)
How many HighSound Combo Low Option should EvTel Kitchen Appliances sell in a year to make a net profit of 0 TL? (Remark: Round up to the nearest integer.)
Transcribed Image Text:EvTel Kitchen Appliances accepts the offer from the Speakers department, they will adjust their production levels accordingly. Firstly, EvTel decided to produce only Low Option. Consider all of the production levels, sales, and production costs in Table A, answer the following questions. (Warning: EvTel Kitchen Appliances produces only Low Option for this part) 2 a) How much does it cost to produce and package one Evtel HighSound Combo Low Option? b) How much does producing and selling one HighSound Combo Low Option contribute to EvTel Kitchen Appliances' profit? c) Report the total yearly fixed cost of EvTel Kitchen Appliances.(Hint: Cost tables are given below) d) How many HighSound Combo Low Option should EvTel Kitchen Appliances sell in a year to make a net profit of 0 TL? (Remark: Round up to the nearest integer.)
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