User Account

All Pages

Profitability at very high volume levels

Assignment Help Business Management
Reference no: EM131444191

Eaton Tool Company has fixed costs of $255,000, sells its units for $66, and has variable costs of $36 per unit.

a. Compute the break-even point.

b. Ms. Eaton comes up with a new plan to cut fixed costs to $200,000. However, more labor will now be required, which will increase variable costs per unit to $39. The sales price will remain at $66. What is the new break-even point?

c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?

Reference no: EM131444191

Questions Cloud

Real rate of interest and the inflation rate : If the real risk-free rate of interest is 4.8% and the rate of inflation is expected to be constant at a level of 3.1%, what would you expect 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the..
What is the real risk-free rate of interest : You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury bills are yielding 4.5% and the future inflation rate is expected to be 2.1% per year. Ignoring the cross product ..
What a foreign firm should think : What a Canadian manager in Canada should take into account when managing an immigrant employee from that country - what a foreign firm should think about adapting to manage successfully in this country
What are distinctive advantages of a qualitative strategy : What are some distinctive advantages of a qualitative strategy for data gathering, such as participant observation, over more quantitative approaches? Be detailed in your response and give an example from your occupation where participant observat..
Profitability at very high volume levels : Ms. Eaton comes up with a new plan to cut fixed costs to $200,000. However, more labor will now be required, which will increase variable costs per unit to $39. The sales price will remain at $66. What is the new break-even point?
Annuity with annual payments : Assume you are to receive a 10-year annuity with annual payments of $218. The first payment will be received today (that is, at t = 0) and the last payment will be received at the end of Year 9 (that is, at t = 9). You will invest each payment in ..
Research a recent private search and seizure case : This week we explore the exclusionary rule, which as we all learned in high school, says that if law enforcement seizes evidence illegally, all of that evidence is excluded. What the Zelinski case from the chapter forces us to think about, is whet..
How to summarize and paraphrase source materials : The purpose of this assignment is to begin drafting your academic argumentative research paper - Demonstrate how to summarize and paraphrase source materials.
Balance sheet amount in accounts receivable : The Arizona Bay Corp sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million what is the company's balance sheet amount in accounts receivable?

Reviews

Write a Review

Business Management Questions & Answers

  Important information about performance management and

important information about performance management and employee servicesyou know that many factors affect the overall

  Formal career development policies and programs

Should organizations adopt formal career development policies and programs? How do these programs affect their ability to be flexibile in terms of staffing? How do they influence their ability to recruit employees?

  Compliance programs created by international companies are

compliance programs created by international companies are instituted by multinational companies to promote regulatory

  What kind of strategy do you have regarding fuel

Have you found that you're able to influence areas that previously would have been out of reach for procurement? What kind of strategy do you have regarding fuel? Aside from fuel, what are the other core categories for you

  Explain a description of each team members personality type

Explain a description of each team member's personality type and a description of the advantages of working with those with differing personality types.

  Why does technology impact the culture of an organization

How does technology impact the culture of an organization and Have you been impacted by technology where you work

  Retaining employees

How could alternative work arrangements benefit you in retaining Julie, a valued employee and what might be the drawbacks to such an arrangement?

  Public relations for a company with damaged credibility

Public relations for a company with damaged credibility - All one would have to do would be to google any one of the companies mentioned to gain an understanding as to current or past problems they have encountered.

  Describe how well the author addressed the topic

In third person, describe how well the author addressed the topic. Does the article offer a clear, thorough and useful explanation of the subject?

  How can a managers communication affect employees motivation

BBA 3302- How can a manager's communication affect employees' motivation? Give an example of a time when a manager's communications increased or decreased organizational members' motivation.

  Aggregate unemployment levels

In the Ricardian model, trade with a low wage country will increase aggregate unemployment levels. Wages in the US are $15/hour while wages inChina are $3/hour. Goods manufactured using only labor will be 5 times cheaper in China.

  Leadership role model week

Nelson Mandela serves as a leadership role model this week. Please take time to think about leadership behaviors you have observed in others in your life. What do the skills look like when masterful leaders successfully communicate, negotiate an..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd