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Project is already completed by not completely correct. Professor gave me feedback on what needs to be fixed, which is what I need assistance with fixing. The spreadsheet that was submitted as well as professor’s specific feedback is attached.
The CEO’s next question is, “What level of output would be required to maximize our profit on the MiniZ?” You have calculated the variable cost per unit for different levels of production. From market research, you have a schedule of prices for these levels. The information for MiniZ is summarized in the table below:
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Order Paper Now| Number of Units | Variable Cost per Unit ($) | Sale Price per Unit ($) |
|---|---|---|
|
200 |
60,000 |
70,000 |
|
250 |
54,000 |
66,000 |
|
300 |
48,000 |
64,000 |
|
350 |
46,000 |
59,000 |
|
400 |
45,000 |
52,000 |
A recommendation on output could affect everyone in the company, from management to sales, to the floor manager and assembly line workers! You don’t want to get this one wrong so you take some extra time to proof your calculations.
Question 4: Based on profit-maximization analysis, what level of output of MiniZ should you recommend to the CEO?
Before starting your calculations, review materials on maximization output.
Submit your Profit-Maximization Output Report and Calculations to the dropbox below. Submit a spreadsheet showing your calculations in Excel and provide a narrative analysis in Word. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.
Your CEO has also asked you to prepare a production cost budget for the MiniY for May 20X8. The actual costs in April 20X8 were as follows:
| MiniY: Production Cost Budget | |
|---|---|
| April 20X8 | |
| Production–Units of MiniY | 3,000 |
| Components cost (variable) | 24,000,000 |
| Labor cost (variable) | 13,500,000 |
| Rent (fixed) | 6,000,000 |
| Depreciation (fixed) | 6,000,000 |
| Other (fixed) | 2,000,000 |
| Total | $51,500,000 |
For the month of May, the number of MiniY produced will increase to 3,200, reflecting an anticipated sales increase related to a new marketing campaign.
Question 5: Using the above information, prepare a budget for MiniY for May 20X8, stating the total cost. Use a spreadsheet to display your data and calculations.
Before starting your calculations, review materials on integrating accounting and financial information.
IPS operates a factory, which produces the MiniY and the MiniX. During September 20X8, the factory produced 3200 units of MiniY and 3000 units of MiniX. The joint cost related to the operation was $3,000,000. MiniX sells for $27,100 per unit and MiniY sells for $25,000 per unit. Allocate the joint costs using the relative sales values of MiniY and MiniX.
Question 6: With the costs that you calculate, what is the profit or loss associated with MiniY? NOTE:Assume that the variable and fixed costs mentioned in Question 5 are also applicable to Question 6 when calculating the profit or loss for MiniY. The costs for this question will be the total of the cost calculated in the above MiniY: Production Cost Budget plus the share of costs of the $3,000,000 (from the paragraph above) allocated to MiniY.
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