What is the output level at which 5z company break even, Operating System

Assignment Help:

The 5Z Company is selling pens to the local market. It is planning to maximize sales and profit by analyzing few conditions using the break-even analysis formula. Below is the data provided for you to make the decision:
 
Fixed cost per annum      $70,000
Unit selling Price      $20
Unit Variable cost      $10
Existing Sales       8,000 units
Relevant range of output    4,000 to 12,000 units
 
a)  What is the output level at which 5Z Company Break even (that is makes neither a profit nor a loss)?

b)  How many units must be sold to obtain $30,000 profit?

c)  What is the profit that will result from a 10% reduction in variable costs and a $10,000 decrease in fixed costs, assuming that current sales can be maintained?

d)  What is the selling price which would have to be charged to show a profit of $40,000 on sales of 8,000 units?

e)  What additional sales volume is required to meet $8,000 extra fixed charge from a proposed plant expansion?


Related Discussions:- What is the output level at which 5z company break even

Inter-process Communication !, My code it didn''t run properly ,i tried to ...

My code it didn''t run properly ,i tried to pass 2 parameter example : ./a.out ls -ll ,but it execute only the ls instead of the ls -ll ! plz help amd thank you ! #include #inclu

Facility location, What is the essence of facility location in production o...

What is the essence of facility location in production operation management

Explain segmentation hardware?, Explain segmentation hardware? We defin...

Explain segmentation hardware? We define an completion to map two-dimensional user-defined addresses into one-dimensional physical addresses. This mapping is affected by means

Illustrate the function of loader, Q. Illustrate the function of Loader? ...

Q. Illustrate the function of Loader? A loader is a routine which loads an object program and prepares it for execution. There are many loading schemes: relocating, absolute an

Explain what is file structure, Problem 1. List out the conditions that...

Problem 1. List out the conditions that result in Deadlock situations. Illustrate deadlock situation with a simple graphical notation Listing conditions for deadlock occu

Define a election algorithm, Consider a setting where processors are not as...

Consider a setting where processors are not associated with unique identifiers but the total number of processors is known and the processors are organized along a bidirectional ri

What is file allocation?, What is File Allocation? The structure that ...

What is File Allocation? The structure that offers the FAT file system its name is the file allocation table . In order to know what this important table does, you should fir

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