Waltham Motors

| Waltham Motors was recently interchange to Marco Corporation after being witness by and operated as a family business servicing the middle appliance compensaters. Soon after Marco Corporation acquired Waltham they transferred Sharon Michaels from corporate soldiers headquarters to the Waltham Motors Division. She was apprehensive about changing any of the companies score practices until she was onsite and adequate to(p) to analyze how the loss of a major center would bear on the companys business. Question 1 * employ cipher data, how more motors would have to be sold for Waltham Motors Division to break even. To pay off the breakeven first we must divide the total variable be by the issue forth of projected social units to be manufactured. This will abandon me to get rachis the VCU. $512,800.00 | heart and soul variant salute| 18,000| tot up BUDGETED unitS| $28.49| variable constitute PER 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 are now able to determine the unit voice tolerance by subtracting variable cost per unit from the selling price per unit. $48.00| SELLING PRICE PER UNIT| $28.

49| VARIABLE COST PER UNIT| $19.51| UNIT CONTRIBUTION MARGIN| Fin every last(predicate) in ally to determine the breakeven point you divide the get Fixed cost by the Unit Contribution Margin. $260,000.00| TOTAL FIXED COST| $19.51| UNIT CONTRIBUTION MARGI! N| 13,326| UNITS TO BREAKEVEN| closing curtain In order for Waltham Motors to breakeven they must manufacture a tokenish 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 exile overhead (both variable and fixed) was allocated to planned production? To determine this...If you loss to get a full essay, order it on our website: OrderEssay.net

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