Costs and relevant information
Course:- Business Economics
Reference No.:- EM132281334

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Need to find the break even analysis based on the info below. Please help

Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY.

A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost.

B. Explain the importance of distinguishing between variable and fixed costs. 

C. The budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information.

a. Cost of goods sold of $35 per unit

b. Labor = $400/month

  • One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c. Advertising fees = $3,000

d. Bank fees = $200

e. Phone/internet = $150 per month

f.  Shipping = $3 per unit

g. Utilities = $100 per month

h. Office Supplies = $900

i. Conference Exhibitor Fee = $3000

j. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Retailers need to define their target markets and then decide how they will differentiate themselves from competitors who also want to serve those markets. For example, differ
Labor market ex for monopsonist. Labor Demand is Qd= 220-5w. Labor supply is Qs=-45+8w. Union has no market power, and so league acts as a monoposonsit facing marginal expendi
In the U.S., what fiscal and monetary policy had a negative impact on its equilibrium of prices? How could a free market society avoid that negative impact and maintain both p
Home Guard has recently completed a $100,000, two-year study on its new pest control device. It can go into production for an initial investment in equipment of $5 million. Th
Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $7 a bunch and each grower maximizes profit by pr
The price-earnings ratio for all companies whose shares are traded on a specific stock exchange follow a normal distribution with a standard deviation of 3.8. A random sample
If firms in the pizza industry are earning negative economic profits, which of the following will most likely occur in the future? a. Some firms will exit the market. b. The e
limit popular influence without destroying popular sovereignty. Illustrate why the framers wanted to achieve each of these objectives and how the Constitution does so.