Inco me TOTAL Sales 30,940 30,940 100.0% VARIABLE COSTS 10,668 $ 16,242 Direct L
ID: 356422 • Letter: I
Question
Inco me TOTAL Sales 30,940 30,940 100.0% VARIABLE COSTS 10,668 $ 16,242 Direct Labor O Direct Material Inventory Carry Total Variable Costs Contribution Margin S0 S0 SO SO S0 S0 $10,668 $16,242 52.5% $26,910 4,031 $26,910 $4,031 870% 13.0% PERIOD COSTS Depreciation SG&A;: R&D; D S0 SO0 $1,000 $0 so $O $ 2,955 S 301 $ 2,000 Promotion $ 2,000 12.9% 517 5,778 ($ 1,748) $ 3,654 ($ 3,654) S0 SO $1,000 0 S 1,000) $O 370% (23.9%) $11,433 Total Period Costs Net Margin $ 1,000) (S 7,402) $ 7,470) (S 2,930) S 5,441) Other (Fees, Write Offs, TQM) ? EBIT O Interest T 4 Profit Sharing ? Net Profit ? | (17.6%) 32,687.97 $20000 $3,654.18 1,000.00 Able Amont Anew Labor Material Inventory Carrying Costs Depreciation Research&Development; Marketing Administrative/Other Net MarginExplanation / Answer
Your forecasts were wrong as it can be seen from the production schedule you forecasted the industry to be on a lower side, that is why you were not able to get the potential market share. Also price and age were main buying criteria so these were to be looked upon. Price graphs are not clear so can't comment on that part.