Please answer all questions, i would appreciate it greatly, they are short. :))) Macrohard's...

60.1K

Verified Solution

Question

Finance

image

Please answer all questions, i would appreciate it greatly, they are short. :)))

Macrohard's future is dependent on their latest model's success, product name Macrobook 3000. They hope to entice buyers away from Apple and Microsoft to a product which they claim to be the most powerful yet efficient that has ever been produced. They claim to have developed a new method of wiring and connecting key components to the motherboard, which will revolutionise the upmarket gaming portable computer. This would explain why the launch was pushed back from Autumn 2026 to Spring 2027 Despite the product's evident value proposition, identifying the correct selling prices will be a critical element in obtaining a leading market share. An initial announcement from Macrohard indicate prices are expected to range from 18000 to 26,000. Macrohard also mentioned they would aim to sell 140,000 laptops a year to break even and recognise that this wouldn't be a simple task, given the gaming market for professional gamers. However, this is not a challenge they can afford to fail. The rumour that the Macrobook 3000 is "the last chance laptop is well-founded. Assume: Retail Selling Price 22,000 (average of 26,000 and 18,000) Trade Selling Price 75% of Retail Selling Price Total Cost 80% of Trade Selling Price Variable Cost X% of Total Cost Assume there are 360 days in a year Required Calculate the total fixed costs for the "Macrohard 3000" project if X is a) 50% (5 marks) b) 65% (4 marks) c) 80% (4 marks) Show your answers, for a) b) c), as an annual total and in /day. d) If the variable cost is 65% of total cost, how many "Macrohard 3000"s would need to be sold to reach a 100 million profit? (4 marks) e) If 200,000 "Macrohard 3000's were sold in the year, assuming the same variable cost from (d), how much profit would they make? (3 marks) f) If the total capital employed on the "Macrohard 3000" project is 10,000 million and the shareholders of Macrohard wanted a 20% return on capital employed (ROCE), how many laptops would need to be sold

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