Nyrb sells pillows to retailers for an average of 30 each

Reference no: EM13371023

NYRB sells pillows to retailers for an average of $30 each. The variable cost of every pillow is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. NYRB operates in Cleveland, OH but is supposing a move to Miami, FL because the weather is nicer. This can cause changes in the selling price, variable costs, and fixed costs. They expect the sales volume to remain the same.

Required:

a. Evaluate the breakeven point in pillows?

b. Find the margin of safety, assuming sales total $60,000?

c. What is the breakeven level in pillows, suppose variable costs increase by 20%?

d. Evaluate breakeven level in pillows, assuming the selling price goes up by 10 percent, fixed manufacturing costs decline by 10 percent, and other fixed costs decline by $100?

Reference no: EM13371023

Questions Cloud

Taskproceed according to the following : taskproceed according to the following instructions.1.identify a recent within the last six 6 months moral dilemma or

Projectperformance analysis of 16 bit by16 bit mac design : projectperformance analysis of 16 bit by16 bit mac design using 53 compressorsabstract32 counters and 42 compressors

A clarify the role of the generations skipping transfer : a. clarify the role of the generations skipping transfer tax.b. in each of the independent situations below evaluate

On february 2007 reflection corporation purchased a parcel : on february 2007 reflection corporation purchased a parcel of land as a factory site for 50000. an old building on the

Nyrb sells pillows to retailers for an average of 30 each : nyrb sells pillows to retailers for an average of 30 each. the variable cost of every pillow is 20 and monthly fixed

Egger manufacturing company is a small bookbinder using : egger manufacturing company is a small bookbinder using machine-hours mh as the single indirect-cost rate to allocate

Linus inc has budgeted overhead for august of 260000 for : linus inc. has budgeted overhead for august of 260000 for variable costs and 435000 for fixed costs. actual costs for

Aubrey inc issued 68 million of 9-year 9 percent : aubrey inc. issued 6.8 million of 9-year 9 percent convertible bonds on june 1 2011 at 98 plus accrued interest. the

Data for december concerning dinnocenzo corporations two : data for december concerning dinnocenzo corporations two major business segments-fibers and feedstocks-appear showsales

User Account

All Pages