Find the break-even point for each process

Assignment Help Business Management

Reference no: EM1356575

Managerial Decision Making, Fixed and Variable Costs Break-even
A distributer of prewashed shredded lettuce is opening a new plant and considering whether to use mechanized process or manual process to prepare the product. The manual process will have a fixed cost of $43,400 per month and a variable cost of $1.80 per 5-pound bag. The mechanized process would have a fixed cost of $84,600 per month and a variable cost of $1.30 per bag. The company expects to sell each bag of shredded lettuce for $2.50.
(a) Find the break-even point for each process.
(b) What is the monthly profit or loss if the company chooses the manual process and sells 70000 bags per month?

Reference no: EM1356575

Questions Cloud

Accrual basis accounting : Determine which of the following is not one of the four conditions that normally must be met for revenue to be recognized according to the revenue principle for accrual basis accounting

Company acquistion-purchase-pooling methods : Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. The following information pertains to Wheal Company on the date of acquisition:

Effectiveness of the therapy or strategy approaches : Locate 2 articles published in last 5 years that discuss the effectiveness of the two therapy or strategy approaches your choose (Existential Orientation/Therapy and Cognitive Behavioral Therapy)

Explain business scenario and specify types of constraints : Explain a business scenario and specify the types of constraints that would be appropriate to make sure the integrity of the database. For example, an airline reservation system should not make a reservation.

Find the break-even point for each process : Find the break-even point for each process and what is the monthly profit or loss if the company chooses the manual process and sells 70000 bags per month?

Corporate investment analysis : As a new analyst, you have computed the following annual rates of return for both Lauren Corporation and Kayleigh Industries. Your manager suggests that because these companies produce similar products,

Steps in accounting cycle for merchandising company : Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company.

Determine the height to which the center of the baton travel : However, as the drawing shows, a plane mirror reflects light from the bird into your camera. If x = 4.2 m and y = 3.9 m in the drawing, for what distance must you set focus of the camera lens in order to snap a sharp picture of the bird's image.

What considering to throw a party to its students : The Faculty of Economics and Administrative Sciences is considering to throw a party to its students. The marginal benefits to the students are given by MB=1200-Q2.

User Account

All Pages