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Danshui Plant No. 2

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1.
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. Total Expected Cost per unit: 41,140,000/200,000 = $205.7 per unit Actual Cost Per Unit: 38,148,000/180,000 = $211.93 per unit

3. Flexible Budget Actual Variance Number of Units 180,000 180,000 -
*Values in Thousands of Dollars($) Revenue 37,116 37,476 360 F Variable Costs: Materials Flash memory 4,860 5,249 389 U Application Process 1,935 1,935 - Chips - phone 2,529 2,529 - Gyroscope 468 468 - 8 Other chips 12,771 12,643 128 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

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