BUS 5110 Group Project:For this activity, you have been hired as a team of consultantson a multi-year basis for aglobalwasher and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economical model. You are tasked to complete several calculations and present your findings to the company stakeholders. You may use any presentation software (Google Slides, Prezi, PowerPoint, etc.) and your completed presentation should consist of 8 –12 slides. A copy of the final presentation will be submitted by each memberof the group in Unit 7.1.For your first assignment, management has provided the following revenue and cost information:High End SetEconomical SetSales price$3,500 per unit$1,000 per unitLabor$875 per unit$250 per unitMaterials$1,400 per unit$300 per unitDirect fixed costs$25,000 per month$16,500 per monthAllocated fixed costs$85,000 per month$85,000 per monthThey want a better understanding of their business to make budgeting and sales goals decisions and have asked you to determine their:a.Break-even quantities for each product lineb.Break-even quantitiesto earn $500,000 per year margin on the high-end line(at the current sales price)c.Break-even quantities to earn $300,000 per year marginon the economical line(at the current sales price)They expect the product lines to fully absorb the costs allocated to them. Once you have determined these amounts, they have asked that you present the information,describe how you performed your calculations, and explain what the results mean.2.Later, the company is considering the purchase of machinery and equipment to set upaline to produce a combination washer-dryer. They have given you the following information to analyze the project on a 5-year timeline:•Initial cash outlay is $150,000, no residual value.•Sales price is expected to be $2,250 per unit, with $595 per unit in labor expense and $795 per unit in materials.•Direct fixed costs are estimated to run $20,750 per month.•Cost of capital is 8%, and the required rate of return is 10%.
•They will incur all operational costs in Year 1, though sales are expected to be 55% of break-even.•Break-even(considering only direct fixed costs)is expected to occur in Year 2.•Variable costswillincrease 2% each year, starting in Year 3. •Sales are estimatedto grow by 10%, 15%, and 20% for years 3 -5.They have asked you to calculate:•the product’s contribution margin•break-even quantity•NPV•IRROnce you have determined these amounts, they have asked that you present the information, describe how you performed your calculations, and explain what the results mean.After you have completed the calculationsand presentedyour work,management makes the investment. Explain how the project analyses do or do not supportthis decision.In either case, whatare the factors that should have been considered in management’s decision?3.After the combo washer-dryer has been in production for a few years, you are asked to perform another analysis.You mustevaluate the performance ofallthree product lines as management is concerned with the viability of the washer-dryer combination product. They provide you with the latest annual information by product:High End SetEconomical SetW/D ComboTotalSales$4,700,000 $4,060,000 $880,000 $9,640,000 Labor$(1,250,000)$(1,015,000)$(235,000)$(2,500,000)Materials$(1,885,000)$(1,220,000)$(315,000)$(3,420,000)Direct fixed costs$(325,000)$(220,000)$(250,000)$(795,000)Allocated fixed costs$(650,000)$(650,000)$(650,000)$(1,950,000)Net Income$590,000 $955,000 $(570,000)$975,000 You are asked to perform an analysis to determine whether to drop or keep the washer-dryer combination product and present your findings, including the steps taken to make your determination. You are also asked to evaluate if the costing methodology is appropriate and, if not,recommend alternative methods.
Please describethecircumstances of thecase studyand make the required recommendations. Explain your approachesto the problems, perform relevant calculations and analyses, and justify your recommendations.Evaluate the results and explain what each calculated value means.Ensure your work and conclusionsare thoroughly supported.Superior presentationswill:•Describe the circumstances.•Perform all calculations correctly.•Articulate howthe calculationswere performed
.•Evaluate the computationsand explain theirmeanings.•Make recommendations, supported bywell thought-out rationaleand considering variousfactors that could impact the decisions