Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. instructions: please show all work to receive cred

Instructions: Please show all work to receive credit for the calculation question. The popular Japanese...

80.2K

Verified Solution

Question

Finance

image

Instructions: Please show all work to receive credit for the calculation question. The popular Japanese Kawasaki motorcycle wants to enter the African market starting with Nigeria, the most populous African nation. However, its fellow country brand Suzuki has preceded it in this African country and is widely popular. Last year, in US$ conversions, Suzuki made a profit of $200 million on sales of $2.5 billion in the country. Suzuki motorcycle sells for $20,000. In comparison, the Kawasaki wants to charge $25,000. The unit variable cost for each Kawasaki motorcycle is $15,000 and the fixed costs total $22 million. a. What is the profit margin (%) for Suzuki? b. How many motorcycles must Kawasaki sell to break even? c. How many motorcycles must Kawasaki sell to realize the same profit margin as Suzuki? d. Now, imagine that Kawasaki can only manufacture 4,000 motorcycles and it wants to achieve a profit margin of at least 12%. What is the minimum price that it can charge to accomplish this goal? Give all final answers to the nearest whole numbers

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students