Description of break-even point

Assignment Help Managerial Accounting
Reference no: EM1348517

Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million. The price for a 240-passenger plane with a range up to 4,010 miles is about $105 million per plane.

Compute the company's break-even point in number of widebody passenger jets and in dollars of sales.

Reference no: EM1348517

Questions Cloud

Managerial accounting-importance of price and volume : Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets?
Determine the angle : An uncharged spherical conducting shell surrounds a point charge - q at its centre. Then a charge +3q is placed on the outside surface of shell.
Leaders traits and follower cooperation : determine whether or not a follower wishes to cooperate. Do you think this is true
Determine resonant frequency in series rlc resonant circuit : Given the series RLC resonant circuit in the figure, operating at variable frequency, determine: The resonant frequency ω o ,  The circuit’s quality factor Q , The cut-off frequencies, f 1  & f 2  and the bandwidth BW
Description of break-even point : Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million.
Criminal behavioral research : A brief description of one ethical principle and one research standard that you think apply to conducting research in criminal behavior. Then, explain how each applies, using specific examples.
Computing financial ratios : Research the the four firms using either Key Statistics or Financials from the overview main pages for the stocks onYahoo! Finance Web site. Compute and compare the following financial ratios for the 4 firms for their most recent fiscal years:
Hr perspective - integrity and personality tests : Do you think employers should use integrity and personality tests to make recruiting and promotion decisions
Traditional cost systems distort costs : Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Discuss the ethical issues

Discuss the ethical issues

  Cost volume profit of procter and gamble company

Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):

  Cvp analysis and income taxes

Diego Motors is a small car dealership. On average it sells the car for $25,000 which it buys from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries.

  Estimating cost-behavior patterns

The following information provides the amount of cost incurred in May for the cost items indicated. During May 16,000 units of the firm's single product were manufactured.

  Calculating-total direct labour cost

Energy Inc. is working on its direct labor budget for next two months. Each unit of output needs 0.77 direct labor-hours.

  Summarize the strategic planning from article

Rebecca meets with the managers of each location each month to review operations results. this meeting, the manager must present a projection of operations for the coming month. Explain how Rebecca utilizes strategic planning.

  Management accounting formats

Management accounting formats are identical for all companies

  Calculating unit price

Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates:

  Benefits of activity-based costing

Illustrate out the benefits of activity-based costing. Write down the limitations of activity-based costing.

  Sensitivity analysis-profit target

Calculate the number of gizmos required to break even under present price and cost conditions. Calculate how many units would have to be sold to meet the profit target for each of the suggested options

  Fixed overhead standard cost variances

Compute the predetermined fixed overhead application rate that would be used in March. Compute the number of machine hours that would be allowed for actual March production. Compute the fixed overhead applied to work in process during March.

  Cash conversion cycle

A firm currently has a 36 day cash cycle. Assume that the firm changes its operations such that it decreases its receivables period by 4 days, increases its inventory period by 1 day and decreases its payable period by 2 days.

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