Question Description

This assignment is Required to be completed using Excel all calculations must be reflected in your spreadsheet.

1)

a. What is the breakeven in units?

b. The margin of safety in unit for:

i. 2016

ii. 2017

iii. 2018

2) A new piece of manufacturing equipment is being considered for purchase. this machine is projected to reduce total cost of goods sold 18% (based on 2018 actual results) and have a useful life of 5 years. If the machine cost $2,500,00 should it be purchased? Explain

3) The company has calculated that 40% of the variable cost of goods sold are attributable to direct materials, and 60% of the variable cost of goods sold are associated with direct labor. What is the direct materials cost per item 2018?

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