Techno Ltd manufactures components for laptop computers. One of its top selling products is the new solid-state drive, the Solix, which will offer improved speed and performance. Earlier this year, a Taiwanese company entered the market offering a similar drive at a price 10% below the Solix price of $400 per unit. Techno Ltd is currently achieving its target profit margin of 30% on all of its products. Required: 1. What target cost would have to be set for the Solix drive to remain competitive and meet the requirements of the company’s target profit margin? 2. Calculate the cost reduction objective. 3. Outline two cost management techniques Techno Ltd could apply to achieve the cost reduction objective.

Heat Inc. sells computer hard drives, and the market is competitive (i.e., sales price will not be affectedby Heat’s sales volume). Its EBIT for 2022 was $69,000 when the sales quantity was 500 units. In 2023,its EBIT was $119,000 when the sales quantity was 700 units.a) Calculate its contribution margin per unit and total fixed costs.b) Calculate the degree of operating leverage for 2022 and 2023.c) If Heat changes its production technology by doubling its fixed costs and the breakeven(indifferent) quantity is 1,120 units, find the new contribution margin.Heat has $40,000 debt that pays annual interest of 15% and 2,000 outstanding common shares that are trading at $25. Its tax rate is 30%. d) Calculate EPS for 2022 and 2023.e) Calculate the degree of financial leverage for 2022 and 2023.f) Calculate the degree of total leverage for 2022 and 2023.g) Heat considers borrowing $20,000 new debts (that also pay 15% interest) to buy back common shares (at current price of $25 per share),…

RoboGarden sells a robot lawn aerator. At the current price, RoboGarden's contribution margin is $129.84 per unit. Because of a shortage of silicon chips, RoboGarden expects variable cost to increase by $10.17. In response, RoboGarden is thinking about raising its selling price by $36.36. Calculate the percent profit breakeven metric for this situation. Report the correct sign for the result. Report your answer as a percent. Report -25.5%, for example, as "-25.5". Rounding: tenth of a percent.

A company has a process that results in 980 kilograms of Product X that can be sold for $9 per kilogram. An alternative would be to process Product X further at a cost of $1960 and then sell it for $16 per kilogram. Should management sell Product X now or should Product X be processed further and then sold? Process further; the company will be better off by $4900. Sell now; the company will be better off by $4900. Process further; the company will be better off by $6860. Sell now; the company will be better off by $8820.