However this phone card can be used to call ANYWHERE in the world. Word count (excluding calculation) no more than 250 words. Chit Chat Phonecard 5 Quantity Chit Chat Phonecard 10 Quantity Chit Chat Phonecard 20 Chit Chat Phonecard 30 Chit Chat Phonecard 50 Rate per minute (US) Local access number is available in the following countries. Provide a detailed explanation of your decision.
(4 marks) c) According to ChitChat Lid's policy, the company will consider launching a new product it - The rate of contribution is at least 70% and - The net profit margin is at least 30% Bearing in mind this policy, and using the information calculated in a) and b) above, assess whether ChitChat Ltd should launch the "M46" product. You are required to show all workings (16 marks) b) Calculate the cost per unit for the "M46" product at a whole life cycle You are required to show al workings. For production costs, the analysis of the costs shows that: Production variable costunit 20 Production fixed cost () £150,000 (if production is up to 10,000 units per year) However, if production volumes exceed 10,000 units, the annual production fixed costs will increase by 50% (Round up to two decimals in your calculation if required) Required: a) Prepare the budgeted results for the "M46" product at a whole life cycle. ChitChat Ltd has developed a brand new mobile phone "M46", the budgeted information of which is as following: Year 0 Year 1 Year 2 Year 3 Year 4 Sale and production units) 5.000 11.000 8.000 3.000 Selling price unit) 60 80 80 50 Marketing cost (E) 75.000 90.000 50,000 30,000 Administration cost (E) 25.000 25.000 25,000 25,000 R&D cost (E" 400,000 *R&D cost is written off to the income statement as incurred. Based on the company's experience, the mobile phones have a life cycle of around four years. Transcribed image text: Question 4 ChitChat Ltd develops and sells mobile phones.
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