Question:
Milano Co. manufactures and sells three products: product 1, product 2, and product 3. Their unit selling prices are product 1, $40; product 2, $30; and product 3, $20. The per unit variable costs to manufacture and sell these products are product 1, $30; product 2, $15; and product 3, $8. Their sales mix is reflected in a ratio of 6:4:2. Annual fixed costs shared by all three products are $270,000. One type of raw material has been used to manufacture products 1 and 2. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: product 1 by $10 and product 2 by $5. However, the new material requires new equipment, which will increase annual fixed costs by $50,000.
Please explain your work in detail and provide in-text citations. At least six (6) peer-reviewed references are required among which one should be the textbook as source of the data. Include the initial situation and initial assumptions in your answer.
Note:
1. Paper needs to be formatted in APA 7th edition
2. Please use Excel for the calculations, and copy the calculation to the word document as the part of the paper.
3. Include the initial situation and the initial assumption in your answer.
4. Need to explain your work in detail and provide in-text citations.
5. Need to have at least 6 peer-reviewed articles as the references (Recommend to find the articles from proquest.)
6. Need to include textbook as the references.
7. Please find the textbook and class PPTs in the attachment.
8. Paper needs to be at least 6 pages including the calculations. (excluding cover page & reference page)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more