0.06
Peso (1=Yes) 0 1.00 10.814 Mexican Pesos = 1.000 US Dollars
Income Information-Current Standards
Current Hi-Tech Broker
Production Current Production = Sales Forecast
Mid-Grade 2,532.00 3,798.00 3,798.00 Production can be increased by 50% and the broker also anticipates that same level
High-End 506.00 759.00 759.00 Production can be increased by 50%
Direct Materials ($)/Unit
Mid-Grade 140.00 140.00 There are no material costs for brokered units
High-End 250.00 250.00 250.00
Direct Labor ($/HR)/Unit 15.00 40.00 40.00 The labor rate is increased due to the technical skill level of operators
Labor Time (Hrs)/Unit
Mid-Grade 20.00 4.00 There are no labor times for brokered units and production times are 20% of original times
High-End 30.00 4.00 4.00 Production times are now equal to the mid-grade level
Direct Cost/Unit
Mid-Grade 440.00 300.00 360.00 The Broker cost for Mid-Grade is based on net FOB destination including shipping/tariffs
High-End 700.00 410.00 410.00
Price/Unit
Mid-Grade 509.00 459.00 459.00 Prices are reduced by 10% because supply is increased
High-End 879.00 789.00 789.00 Prices are reduced by 10% because supply is increased
Plant Overhead/Yr
Salaries 50,000 95,000 95,000 Need to add a 45,000 a year maintenance position for the equipment
Utilities 9,000 27,000 4,497 Utilities are expected to be 3 xs current at full production (150% above current levels) based on units produced
Benefits 103,730 82,412 21,644 Benefits are 10% of all wages (including direct labor)
Insurance 3,000 15,000 15,000 Insurance will increase by 12,000 with the addition of the equipment and building expansion
Property Taxes 975 3,900 3,900 Property taxes are 6.5%, assessment is 1% of original value, and that is on all plant/equipment
Depreciation 50,000 466,667 466,667 Buildings are at 30 years and Equipment is at 10 years, straight line
Supplies 6,000 6,000 6,000 Supply expense is miscellaneous and does not vary
Income Tax Expense 17,882 82,137 21,401 Taxes are 42% of Net Income
265,282 891,543 663,663 Net Margins
222,705 695,979 612,708 Overhead
42,577 195,564 50,955 Net Income before taxes