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
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the Danshui Plant No. 2 to assemble the new iPhones. Danshui Plant No.2, a contract manufacturer in southern China that assembles electronic products for companies wishing to save on labor costs, received a one-year contract starting on June 1, 2010 with the Apple Corporation to assemble 2.4 million iPhone 4s. In the first three months of the contract it became obvious that the plant was unable to assemble the expected 200,000 iPhones per month and was operating at a loss. Although the plant is
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Volume of sales before the 10% discount | 1.55 million 1.50million | | Volume of sales after the 10% discount | 1.65 million 1.70 million | | 1. Calculate the price elasticities of demand for group A and group B. 2. Explain what is the nature towards price of each of the groups and how the discount will affect total revenue from each group. 3. Assuming Amazon.com knows which group each customer belongs to when he logs on and If Amazon.com wants to
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Introduction Danshui was a contract manufacturer that assembled electronic products located in Southern China. Danshui has a contract to assemble 2.4 million iPhones within the period from 1st June 2010 to 31st May 2011 and their current production is only 180,000 units per month compared to planned production is 200,000 units. Danshui is using semiskilled labor for less than 1 dollar an hour and assembly line technique. Due to high demand of IPhone 4, Apple had contracted with Danshui to assemble
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market. As such, John Chen - the current CEO - has stated in their recent earnings report conference call that Blackberry plans to re-roll out their old devices at a highly discounted price to emerging markets. In addition, Blackberry plans to release 2 new devices: the Z3 and the Q20; a low-end device targeting emerging markets codenamed “Jakarta” and a high-end QWERTY device
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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
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Danshui Plant No.2 1. Variable Costs = Material Cost + Labor Cost + Shipping Cost = 187.89+13.11+1.06 = 202.06 / Unit Fixed Costs = 729,000 / Month Price = 41,240,000 / 200,000 = 206.2 Contribution Margin = 206.2-202.6 = 4.14 / Unit When it comes to the break even, Contribution margin * Unit(BE) = Fixed Costs. Unit(BE) = 729,000 / 4.14 = 176,086.96， So the break even for Danshui is 176,087. 2. Based on the data in Exhibit 3, Total expected cost / Unit = 41,140,000 / 200,000
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Case #3 Danshui Plant No.2 Answers 1. The break-even point for Danshui plant no 2 is 175874.54 units. The calculation of this number is simply from the break-even formula, fixed costs divided by contribution margin per unit. Fixed costs for the plant were 729 000 and the contribution margin is revenue minus variable costs which equals to 829 000 and the CM per unit is 829 000 / 180 000 which is 4,145. The break-even is therefore 175874.54 units. 2. The actual and expected
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Danshui Plant No.2 Case Study Yuli Tang Rui Zhang Due Date: April 9, 2013 1. As we can see from the Exhibit 1, 176,087 Apple iPhone 4’s would have to have been completed for Danshui Plant No.2 to break even. 2. The total expected cost per unit was $205.7 per unit and the actual cost per unit was $211.93 per unit. See Exhibit 2. 3 & 4. The data is showing in the Exhibit 3 & 4. 5. From the data of question 3, the variance of revenue is favorable because Apple increased price of
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1. Danshui Plant No 2 Case Study Free Essays 1 - 30 www.papercamp.com/group/danshui-plant-no-2-case-study/page-0 Search Results for 'danshui plant no 2 case study'. Displaying 1 - 30 of 1,500. Case Studies Of Corporate Firms. : distribution of wafer production lines, 1995 ... 2. Danshui Plant No. 2 Case Study features.rr.com/article/080P6pegST5Zp?q=iPhone 1) Using budget data, 176087 iPhone 4's must be completed on a monthly basis in order for Danshui Plant No. 2 to break even. The first step
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