Please Answer the folowing, refer to “Danshui Plant No.2” case study :

Case Question:

1. What is break even sales? Using Budget Data, estimate the breakeven sales for Apple iPhone 4.

2. Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

3. Prepare Flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August.

4. Give your suggestions on some strategies or decisions that Wentao Chen should consider in trying to solve the problems with the Apple iPhone 4 contract in the next nine months? How would theses change the cost and profitability of Danshui Plant No. 2 iPhone 4 contract?

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