Instruction
----- Modified Instruction (06/22/2019 01:40:33) -----
This is what I have been assigned:
Q6. Using the financial statements in the 2018 Annual Report, calculate and report the ratios set out in the table below for 2017 and 2018 financial years. Ensure that you present your findings in an appropriate and easily understood format.
Q7. Write a summary highlighting the major trends that this analysis shows as having emerged in Scott Technologies financial performance in 2017 and 2018.
Word count :(400 words)
Q8. Break-Even Analysis and Overheads
Scott Technology has decided to produce a new robot for sale to manufacturing plants. The manufacture of this new robot will require a new production department to be established and additional workers to be employed. They plan to sell the new robot for $65,000 each. The manager of the manufacturing department has estimated the following costs arising from this initiative:
Direct Raw materials: $25,000 per machine
Labour: $12,000 per machine
Direct Consumables: $8,000 per machine
Rent, maintenance etc: $45,000 per month
Depreciation: $35,000 per month
Note: this case study about a new machine has been invented by OP for educational purposes.
You are required produce the following analysis for the manager:
a) Calculate the contribution margin per robot - Show all workings.
b) Calculate the number of robots they have to make and sell to reach break-even point per month. Show
all workings.
c) Calculate the break-even point per month in dollars ($) sales. Show all workings.
d) Calculate the monthly sales volume (number of robots) required to make a monthly profit of $200,000.
e) Calculate the total monthly sales ($s) required to make a monthly profit of $200,000.
f) Calculate the total profit generated in the first three months from these new robots if Scott Technology
sells $3,900,000 of these new robots during that period.
*I have attached Financial report for the company Scott Technology and The table for Q6.
----- Modified Instruction (06/22/2019 01:42:02) -----
----- Modified Instruction (06/22/2019 01:40:33) -----
This is what I have been assigned:
Q6. Using the financial statements in the 2018 Annual Report, calculate and report the ratios set out in the table below for 2017 and 2018 financial years. Ensure that you present your findings in an appropriate and easily understood format.
Q7. Write a summary highlighting the major trends that this analysis shows as having emerged in Scott Technologies financial performance in 2017 and 2018.
Word count :(400 words)
Q8. Break-Even Analysis and Overheads
Scott Technology has decided to produce a new robot for sale to manufacturing plants. The manufacture of this new robot will require a new production department to be established and additional workers to be employed. They plan to sell the new robot for $65,000 each. The manager of the manufacturing department has estimated the following costs arising from this initiative:
Direct Raw materials: $25,000 per machine
Labour: $12,000 per machine
Direct Consumables: $8,000 per machine
Rent, maintenance etc: $45,000 per month
Depreciation: $35,000 per month
Note: this case study about a new machine has been invented by OP for educational purposes.
You are required produce the following analysis for the manager:
a) Calculate the contribution margin per robot - Show all workings.
b) Calculate the number of robots they have to make and sell to reach break-even point per month. Show
all workings.
c) Calculate the break-even point per month in dollars ($) sales. Show all workings.
d) Calculate the monthly sales volume (number of robots) required to make a monthly profit of $200,000.
e) Calculate the total monthly sales ($s) required to make a monthly profit of $200,000.
f) Calculate the total profit generated in the first three months from these new robots if Scott Technology
sells $3,900,000 of these new robots during that period.
*I have attached Financial report for the company Scott Technology and The table for Q6.