Waltham Motors

| Waltham Motors was recently exchange to Marco Corporation after being decl be by and operated as a family business servicing the centre of attention appliance compensaters. Soon after Marco Corporation acquired Waltham they transferred Sharon Michaels from corporate array headquarters to the Waltham Motors Division. She was apprehensive about changing any of the companies history practices until she was onsite and adequate to(p) to analyze how the loss of a major abbreviate would bear on the companys business. Question 1 * employ reckon data, how more motors would have to be sold for Waltham Motors Division to break even. To pay off the breakeven first we must divide the total variable be by the issuing of projected units to be manufactured. This will abandon me to get anchor the VCU. $512,800.00 | heart and soul variant salute| 18,000| summarise BUDGETED unitS| $28.49| uncertain personify PER UN IT| Next we holdd the merchandising set per unit by dividing the total sales by the budgeted units. $864,000.00| TOTAL BUDGETED sales| 18000| TOTAL BUDGETED UNITS| $48.00| SELLING PRICE PER UNIT| | | With this discipline we are now able to determine the unit voice permissiveness by subtracting variable cost per unit from the selling toll per unit. $48.00| SELLING PRICE PER UNIT| $28.

49| VARIABLE COST PER UNIT| $19.51| UNIT CONTRIBUTION MARGIN| Fin all in all in ally to determine the breakeven point you divide the gibe Fixed cost by the Unit Contribution Margin. $260,000.00| TOTAL FIXED COST| $19.51| UNIT CONTRIBUTION MARGIN|! 13,326| UNITS TO BREAKEVEN| stopping point In order for Waltham Motors to breakeven they must manufacture a marginal of 13,326 units to cover all cost. Question 2 * Using budget data, what was the total expected cost per unit if all manufacturing and tape drive overhead (both variable and fixed) was allocated to planned production? To determine this...If you pauperism to get a full essay, order it on our website: OrderEssay.net

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