Reference no: EM132976760
Printing Press expects to sell 1,000 books this month. Data on monthly costs are as follows:
Per unit costs:
Selling price $8.00
Variable manufacturing costs $2.75
Variable selling costs $0.25
Total costs:
Fixed manufacturing costs $1,000
Fixed selling costs $125
You have been asked to help the owner evaluate operations through performing a break-even analysis.
Problem a) Determine what the current break-even point is in units
Problem b) The owner is thinking of buying a new printer which will cost $300. What is the new break-even point?
Problem c) Instead of buying a new printer, the owner is thinking of buying paper in bulk which will result in cost savings of $0.75 per unit. What is the new break-even point?
Problem d) Based on the three alternatives (do nothing, purchase the new printer, and buy paper in bulk), what would you suggest the owner do and why?
|
What results of each ratio mean in relation to the industry
: What the results of each ratio mean in relation to the industry averages. In your opinion, what can the financial manager of Healthy Body Nursing Home
|
|
Determine the number of months
: Your best friend is saving $1,800.00 and will earn 0.17 percent per month. Determine the number of months until the account grows to $2,000.00
|
|
How much can be paid out as dividends
: Assume a firm has a net profit $20 million last year, its target capital structure is 30% debt and 70 equity, How much can be paid out as dividends
|
|
Determine diane total income tax deduction per pay period
: Determine Diane's total income tax deduction per pay period. Diane works for Downy Corporation in Alberta and earns an annual salary of $44,550.00 paid
|
|
Determine what the current break-even point is in units
: Based on the three alternatives (do nothing, purchase the new printer, and buy paper in bulk), what would you suggest the owner do and why?
|
|
What will be the portfolio return
: If an investor decides to invest 30% of his wealth in government bond (Risk free), 30% in Stock A and 40% in Stock B, what will be the portfolio's return
|
|
Post the entries to t-accounts
: Post the entries to T-accounts. Write the letter of the transaction in the account before the dollar amount. Determine a balance for each account.
|
|
Make journal entries to record each of transactions
: Prepare journal entries to record each of the transactions for Sanchez Company. Use the letter of the transaction in place of the date.
|
|
Compute the economic order quantity
: Compute the economic order quantity. How many orders would MAGIGINGMAGALING AKO Co. place under the EOQ policy
|