Conch Republic Consumer electronics is a midsized electronics company located in Essential West, Sarasota. The company president is Shelley Couts, who inherited the company. When it opened over 70 years ago, the organization originally repaired radios and other household home appliances. Over the years, the company expanded into manufacturing and it is now a reputable manufacturer of various electronic items, Jay McCanless, a recent MASTER OF BUSINESS ADMINISTATION graduate, have been hired by company's fund department.
One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic presently has a single PDA style on the market, and sales have been excellent. The PDA iis a remarkable item in that it comes in a number of tropical shades and is preprogrammed to play Jimmy Buffett music. However , much like any electronic digital item, technology changes speedily, and the current PDA provides limited modele for a new PDA which includes all the highlights of the existing PDA but provides new features compared to newer versions. Conch Republic spent $750, 000 to build up a model for a fresh PDA which includes all the highlights of the existing PDA but adds new features just like cell phone capability. The company offers spent another $200, 500 for a marketing study to look for the expected product sales figures to get the new PDA.
Conch Republic can easily manufacture the brand new PDA intended for $150 every in variable costs. Fixed costs intended for the procedure are predicted to run $4. 5 mil per year. The estimated sales volume is 70, 000, 80, 1000, 100, 000 85, 500 and seventy five, 000 per each year for five years, respectively. The unit price from the new PERSONAL DIGITAL ASSISTANT will be $340. The necessary equipment can be purchased for $16. your five million increase in depreciated over a seven-year MACRS schedule. It really is believed the value of the equipment in five years will be $3. 5 , 000, 000.
Since previously stated, Conch Republic currently