Danshui Plant No.2 Essay

659 Words Dec 1st, 2013 3 Pages
Question for Danshui Plant No. 2 1. Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No.2 to break even?
Variable Costs: 187.89 + 13.11 + 1.06 = $202.06 per unit
Fixed Costs: $729,000 per month
Revenue: 41,240 / 200 = $206.2 per unit
Contribution Margin = 206.2 - 202.06 = $4.14 per unit
Break-even = 729,000 / 4.14 = 176,086.96 units
Answer : 176,087 iPhones

2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping?
Total Expected Cost per unit: 41,140,000 /
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128 F 22,563 22,824 261 U

Variable supplies and tools 11,257.20 11,305 47.80 U

Assembly and packing 2,359.80 3,092 732.20 U

Shipping 190.80 191 0.20 U

Total variable costs 36,370.80 37,412 1041.20 U

Fixed Costs:
Factory rent 400 400 -
Machine depreciation 150 150 -
Utility fee and taxes 52 52 -
Supervision 127_ 134 7___
Total Fixed Costs 729 736 7
Total costs 37,099.80 38,148 1048.20 U
Net Income $16.20