A company have fixed costs of $150,000, sell its unit for $30, and have fluctuating costs of $15.50 per element.?

a. Compute the Break-even point
b.A new plan arrises to cut fixed costs to $75,000. However, more labor will in a minute be required, which will increase variable costs costs per component to $17. The sales price will remain at $30. What is the untried break -even point?
c. Under the new plan, What is plausible to happen to profitability at thoroughly high volume level (compared to the old plan)

How much is 350- 400 francs contained by USD?

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Answers:   Under a., you hold a contribution margin of $14.50 per element. Under b., $13.00 per unit. You should know how to take it from in attendance.

Which company is the most reliable for shipping of items from US to Australia?Ive have plentiful problems near USPS

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FYI: There are two kinds of break-even points: break even total and break even sales.

my solution:

For sound out A:

BEQ (break-even quantity) = Fixed Costs/ (Selling Price per unit -Variable Cost per unit)
BEQ=$150,000/(30-15.50)
BEQ=10,344.82759 or 10,345 unit

BES(break-even sales)= BEQ(Selling Price)
BES=10,345(30)
BES=$310,350

for question B:

BEQ=75,000/(30-17)
BEQ=5,769.230769 or 5769

BES=5769(30)
BES=173,070

for examine C:

profitability in the spanking new plan is better compared to the old plan. when we compare the sale needed in both the matured and new plan to break-even, we see that the fresh plan requires less sale for us to break-even.


finished!

where do you study? is this for your course/degree, nouns or accounting, perhaps? economically, good luck near the subject! =]

hope this helps.=]

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