Home / Questions / Gafat Engineering Ethio Plc manufactures two types of TV sets LCD and CRT both
Gafat Engineering Ethio Plc manufactures two types of TV sets – LCD and CRT – both having only one model. The LCD and CRT television sets sell for Br 9,000 and Br5,000, respectively. The company sells its products through its own stores and other outlets. Total fixed expenses are Br15,000,000 per month. Variable expenses and monthly sales data are given below: LCD CRT Variable expenses Br5,000 Br2,000 Monthly sales in units 2,000 3,000 Required: (unless stated figures should be computed for one month) a) Determine breakeven total volume of sales and sales volume for each product. b) Determine sales volume and sales revenue for the company to earn Br500,000 profit after 30% profit tax. c) The company has planned to incur Br 200,000 monthly selling (promotional) expenses to increase sales volume for its LCD TV sets to 4,000. If the plan materializes and other things remain constant, determine breakeven sales volume and sales revenue for the company. d) The company has planned to buy new and improved technology that reduces variable production expenses for its LCD TV set to Br4,000 while increasing its monthly fixed production costs by Br500,000. If the plan materializes and other things remain constant, determine breakeven sales volume and sales revenue for the company. e) If the company is guaranteed with total sales volume of 10,000 TV sets in a given month, should it go for option “c” or “d” above given that sales mix remained constant as provided in each of the two options? Why? What if the guaranteed total sales volume of 7,000 instead of 10,000? Why? What should be the guaranteed total sales volume for the two options to provide equal profit to the company?
Jan 31 2020 View more View Less
Although we often view the Civil War as a war about slavery, the war was also the nation’s greatest crisis in federalism. A key question decided by the war was whether a ...
Dec 16 2019Step 3 Substituting this back into the integral, we have the following. W = Tec F. dr (t - t cos(t) + 8 sin(t)) dt Using integration by parts for the second term, we find...
May 04 2021Tropic Zone Corporation experienced the following variances: materials price $350 U, materials quantity $1,700 F, labor price $800 F, labor quantity $500 F, and overhead ...
Apr 09 2020able 1machinery accidents avoidedautomobile accidents avoidedtotal lives saved20121200804144201384056310120145883947120154122764920162881933520172021352420181419517201999...
Aug 10 2021Use cylindrical shells to find the volume of a solid torus with radii r and R (see the figure below). R Volume =
May 09 2021Defects occur along the length of a filament at a rate of λ = 2 per foot.(a) Calculate the probability that there are no defects in the first foot of the filament.(b) Cal...
Aug 04 2020The following data relate to the Happy Division of Euphoria Company: Sales P10,000,000 Variable costs ...
Jun 18 2021Although the researchers adjusted the odds ratios for parity, birth spacing was not included in the adjusted model. Briefly discuss whether you think the researchers shou...
Mar 21 2020In the ________, neurons are arranged like maps that correspond to different parts of the body surface.a. retina b. somatosensory cortex c. basilar membraned. occipital lobe
Jul 06 2021Which antitrust act was passed to protect independent retailers from "unfair discrimination" by chain stores?A) Federal Trade Commission ActB) Robinson-Patman ActC) Sherm...
Dec 10 2019