Development Cost Prototype Phase 35 53 First Month of Sales 57 Fixed Costs 61 53 65 69 First Month of Profit Manufacturing Phase Product Table 5.2: Break-even analysis for the project based on manufacturing 500 units per year RM Fixed Costs (for 500 units, per annum) Business Lease 60,000 Property Taxes 22,000 Insurance 18,000 Utilities 3,000 Development Cost 2,500 Executive Salaries 25,000 On-site Equipment 150,000 Manufacturing 80,000 Post-processing 40,000 Maintenance 30,000 Total Fixed Cost 430,500 Materials 4,000 Labour 6,000 Manufacturing Maintenance 5,000 1,500 Overhead 750 Logistics 500 Total Variable Cost per Unit 17,750 Break Even Selling Price per Unit 25,000 Profit (Selling Price - Variable 7250 Cost) per Unit Units to Break Even Profit Targets Units to generate RM50,000 profit and RM 100k profit respectively 60 67 & 74
Development Cost Prototype Phase 35 53 First Month of Sales 57 Fixed Costs 61 53 65 69 First Month of Profit Manufacturing Phase Product Table 5.2: Break-even analysis for the project based on manufacturing 500 units per year RM Fixed Costs (for 500 units, per annum) Business Lease 60,000 Property Taxes 22,000 Insurance 18,000 Utilities 3,000 Development Cost 2,500 Executive Salaries 25,000 On-site Equipment 150,000 Manufacturing 80,000 Post-processing 40,000 Maintenance 30,000 Total Fixed Cost 430,500 Materials 4,000 Labour 6,000 Manufacturing Maintenance 5,000 1,500 Overhead 750 Logistics 500 Total Variable Cost per Unit 17,750 Break Even Selling Price per Unit 25,000 Profit (Selling Price - Variable 7250 Cost) per Unit Units to Break Even Profit Targets Units to generate RM50,000 profit and RM 100k profit respectively 60 67 & 74
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
Related questions
Question
Create me a simplified cash flow diagram for the project starting from initial development until the first month of profit.
(The second photo is the template for cash flow diagram)
![Development Cost
Prototype Phase
35
53
First Month of Sales
57
Fixed Costs
61
53
65
69
First Month of Profit
Manufacturing Phase](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4000e28a-5cf8-47ab-bb9c-d9b564c038d2%2F275f86e7-5f95-403f-aef8-27291bb548e8%2Fkdesw8l_processed.png&w=3840&q=75)
Transcribed Image Text:Development Cost
Prototype Phase
35
53
First Month of Sales
57
Fixed Costs
61
53
65
69
First Month of Profit
Manufacturing Phase
![Product
Table 5.2: Break-even analysis for the project based on
manufacturing 500 units per year
RM
Fixed Costs (for 500 units, per
annum)
Business Lease
60,000
Property Taxes
22,000
Insurance
18,000
Utilities
3,000
Development Cost
2,500
Executive Salaries
25,000
On-site Equipment
150,000
Manufacturing
80,000
Post-processing
40,000
Maintenance
30,000
Total Fixed Cost
430,500
Materials
4,000
Labour
6,000
Manufacturing
Maintenance
5,000
1,500
Overhead
750
Logistics
500
Total Variable Cost per Unit
17,750
Break Even
Selling Price per Unit
25,000
Profit (Selling Price - Variable
7250
Cost) per Unit
Units to Break Even
Profit Targets
Units to generate RM50,000 profit
and RM 100k profit respectively
60
67 & 74](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4000e28a-5cf8-47ab-bb9c-d9b564c038d2%2F275f86e7-5f95-403f-aef8-27291bb548e8%2Fcyi8gc9_processed.png&w=3840&q=75)
Transcribed Image Text:Product
Table 5.2: Break-even analysis for the project based on
manufacturing 500 units per year
RM
Fixed Costs (for 500 units, per
annum)
Business Lease
60,000
Property Taxes
22,000
Insurance
18,000
Utilities
3,000
Development Cost
2,500
Executive Salaries
25,000
On-site Equipment
150,000
Manufacturing
80,000
Post-processing
40,000
Maintenance
30,000
Total Fixed Cost
430,500
Materials
4,000
Labour
6,000
Manufacturing
Maintenance
5,000
1,500
Overhead
750
Logistics
500
Total Variable Cost per Unit
17,750
Break Even
Selling Price per Unit
25,000
Profit (Selling Price - Variable
7250
Cost) per Unit
Units to Break Even
Profit Targets
Units to generate RM50,000 profit
and RM 100k profit respectively
60
67 & 74
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