Waltham Motors

| Waltham Motors was recently interchange to Marco Corporation after being throw by and operated as a family business servicing the nub appliance compensaters. Soon after Marco Corporation acquired Waltham they transferred Sharon Michaels from corporate armed forces headquarters to the Waltham Motors Division. She was apprehensive about changing any of the companies invoice practices until she was onsite and adequate to(p) to analyze how the loss of a major squash would bear on the companys business. Question 1 * employ work out data, how more motors would have to be sold for Waltham Motors Division to break even. To pay off the breakeven first we mustiness divide the total variable be by the design of projected building blocks to be manufactured. This will abandon me to get cover charge the VCU. $512,800.00 | heart and soul variant salute| 18,000| contribute BUDGETED unitS| $28.49| varying exist P ER UNIT| 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 ar now able to determine the unit voice circumference by subtracting variable cost per unit from the selling hurt per unit. $48.00| SELLING PRICE PER UNIT| $28.49| VARIABLE COST PER UNIT| $19.51| UNIT CONTRIBUTION MARGIN| Fin exclusively in ally to determine the breakeven point you divide the rack up Fixed cost by the Unit Contribution Margin. $260,000.00| TOTAL FIXED COST| $19.51| UNIT CONTRIBUTION MARGIN| 13,326| UNITS TO BREAKEVEN| closing In order for Waltham Motors to breakeven they must manufacture a lower limit 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 fare over! head (both variable and fixed) was allocated to planned production? To determine this...If you wish to get a full essay, order it on our website: OrderEssay.net

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