Solve breakeven problem, Operation Management

Assignment Help:

Breakeven Problem

1. Avila Manufacturing plans to increase capacity by adding new equipment. They have received two proposals.

Fixed CostVariable Cost/Unit

Proposal A $32,000 $12.00

Proposal B $50,000 $10.00

The revenue generated by each unit is $20.00.

a. What is the break-even point in units (when profit = zero) for Proposal A?

b. What is the break-even point in units (when profit = zero) for Proposal B?

c. Draw the lines represented by both Proposal A and B on an X-Y coordinate graph with Units on the X axis and Profits on the Y axis.
Use the form y = mx + b or

Profit = (Revenue/unit - Variable cost/unit) * Units - Fixed Cost


Related Discussions:- Solve breakeven problem

Calculate the total cost of ordering and carrying clay pots, 1. Garden Vari...

1. Garden Variety Flower Shop uses 1000 clay pots a month. The pots are purchased at $3 each. Annual carrying costs per pot are estimated to be 25% of cost, and ordering costs are

Aims of trade off in business strategy - operations focus, Aims of Trade of...

Aims of Trade off in Business Strategy - Operations Focus The aim of operations focus is to ensure that, along with the other management functions, all of the operations workf

Regarding process improvement, During the analysis of a process that was ev...

During the analysis of a process that was evaluated, it was seen that the variability was non-random on several occasions, i.e, it did not meet acceptable quality standards. Howeve

Explain self-preservation is not the highest value, Are there situations in...

Are there situations in which self-preservation is not the highest value?

Explain what is the expected growth rate, Sidman Products' common stock cur...

Sidman Products' common stock currently sells for $51 a share. The firm is expected to earn $6.10 per share this year and to pay a year-end dividend of $2.40, and it finances only

Describe the key factors of bric economies., The G Banking Group recently r...

The G Banking Group recently reported that it was off shoring (moving) its back-office operations from European country D to India where it already has some significant operations.

Explain what is its cost of common equity, The earnings, dividends, and com...

The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 8% per year in the future. Carpetto's common stock sells for $27.75 per share,

Explain crises are a regular part of organizational life, How do you think ...

How do you think planning in today's organizations compares to planning 25 years ago? Do you think planning becomes more important or less important in a world where everything is

What is business process re-engineering, What is Business process re-engine...

What is Business process re-engineering? Business process re-engineering (BPR): The basic redesign of existing business processes to attain enhancements in critical areas

Explain detect the presence of assignable causes, If the time order of prod...

If the time order of production has not been recorded in a set of data from a process is it possible to detect the presence of assignable causes?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd