Danshui Plant No. 2

In: Business and Management

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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