I need assistance figuring out Allocated Plant Costs, Total Fixed Cost, and Brea
ID: 3143247 • Letter: I
Question
I need assistance figuring out Allocated Plant Costs, Total Fixed Cost, and Break Even Point for all three markets.
Given that the annual depreciation cost for the local plant is $50 million, use the data in the table below to allocate the fixed cost of the plant based on unit sales. Then calculate total fixed cost and break-even units. Amounts (except depreciation) are in local currency; you will need to convert the depreciation to the local currency.
Market 1
Market 2 Market 3
Projected Units
120
220
40
Avg. Selling Price
75
5.00
24
Avg. Variable Cost
44
2.60
18
Advertising
250
100
30
Promotion
70
20
15
Sales Force
90
45
25
Administration
250
22
100
Fixed Costs
175
10
30
Exchange Rate/ $
39,6425
2.4987
15.3204
Allocated Plant
15.79
28.95
5.26
Total Fixed Cost
26.51
41.76
13.75
Break-Even Units
63
50
48
Market 1
Market 2 Market 3
Projected Units
120
220
40
Avg. Selling Price
75
5.00
24
Avg. Variable Cost
44
2.60
18
Advertising
250
100
30
Promotion
70
20
15
Sales Force
90
45
25
Administration
250
22
100
Fixed Costs
175
10
30
Exchange Rate/ $
39,6425
2.4987
15.3204
Allocated Plant
15.79
28.95
5.26
Total Fixed Cost
26.51
41.76
13.75
Break-Even Units
63
50
48
Explanation / Answer
this is a question related to accounting. However, U can get the solution by following this link.
http://www.chegg.com/homework-help/questions-and-answers/2-given-annual-depreciation-cost-local-plant-50-million-use-data-table-allocate-fixed-cost-q19234318
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