Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

A company located in Munich makes Christmas nutcrackers and has an annual plant capacity of 2,400 product units. Its predicted operating results (in German marks) for the year are the following:

Production and sales of 1,500 units, total sales DM 180,000

Manufacturing costs:
-Fixed (total) 90,000
-Variable (per unit) 31

Selling and administrative expenses:
-Fixed (total) 50,000
-Variable (per unit) 15

Compute the following, ignoring income taxes:

1. There is a special order of 400 units to be sold at DM 50 per unit. Compute the new net income. You can state your assumptions about what costs are relevant and irrelevant. There is no one correct set of assumptions.

2. Ignore the requirement regarding the special order in part 1. Now the company wants a target net income of 30,000 DM. It wants to understand how and if it can achieve it.
For each method, compute the following:
-Compute the number of units the company must sell to make the targeted net income it desires. (Show calculations.)
-describe what would happen in this situation if the variable costs increased or decreased.
-describe what would happen in this situation if the fixed costs increased or decreased.
-What would happen in this situation if the sell price increased by 10% and all of the other costs stayed the same? (Show calculations.)

Discuss the limitations; do not limit the computations to what you think.

3. Assume that capacity and sales can be doubled to 4,800 units. Again, compute the new net income if facilities costing 500,000DM are added at 5-year life

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928795

Have any Question? 


Related Questions in Business Management

Describe the stages of group development for each discuss

Describe the stages of group development. For each, discuss what questions the individual asks at that stage, and what the leader should do to facilitate it.

Module - slpbuilding an ethics-based workplace culturethe

Module - SLP Building an Ethics-Based Workplace Culture The Chief Ethics Officer Assignment Overview In this assignment you will be asked to consider the role of organizational leaders with respect to ensuring companies ...

Explain the need for and the process for flexible budgeting

Explain the need for and the process for flexible budgeting in healthcare organizations today. Your response must be at least 200 words in length. Your response must be at least 200 words in length.

To define your marketable strengths to assist you with your

To define your marketable strengths to assist you with your Module 3 Major Project, complete the Skills Exercise. This exercise provides a checklist of 300 skills, knowledge, and abilities. They represent what companies ...

1 how does the financial aspect of an organization

1. How does the financial aspect of an organization influence decision making and the outcome? 2. What are the advantages and disadvantages of a firm's use of power purchasing parity? Provide an example. 3. Interview one ...

Level the playing fieldthe original intent of affirmative

Level the Playing Field The original intent of affirmative action was to "level the playing field" and ensure minority groups were treated fairly during the employment process. Using the original goal of affirmative acti ...

Assignment purposeunderstand the systems development life

Assignment Purpose: Understand the systems development life cycle (SDLC) Assignment Description: After reading about the systems development life cycle in your textbook, you decide that you want to learn more about it. C ...

Your final project will be to create a program for the 3pi

Your final project will be to create a program for the 3Pi to perform a number of line following tasks. You may not program the robot between tasks but are allowed to provide inputs to the robot before each task.  All li ...

Discuss the ways in which a physician office practice can

Discuss the ways in which a physician office practice can optimize its financial condition and benefit its hospital partner. Your response must be at least 200 words in length.

Assignment communications plan and presentationyou

Assignment: Communications Plan and Presentation You developed a communications policy that mapped the type of communications messages for a specific audience at a company. In this assignment, you will go a step further ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen