What is the bep, Cottage Industries Ltd expects to sell 500

What is the bep

Assignment Help Finance Basics

Reference no: EM131436470

Question: Cottage Industries Ltd expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed costs of operating the workshop for a month to £3,000. Using the machine would reduce the labour time to half an hour per basket. The basket makers would still be paid £10 an hour.

(a) How much profit would the business make each month from selling baskets

(i) assuming that the basket-making machine is not rented, and

(ii) assuming that it is rented?

(b) What is the BEP if the machine is rented?

Reference no: EM131436470

Questions Cloud

Find msa and mse : Find SST, SSA, and SSE.- Find MSA and MSE.- Compute the value of the test statistic.- If a = 0.05, would you reject the null hypothesis?

Management of high tech services : Management of High Tech Services (HTS) would like to develop a model that will help allocate technician time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the 2-week ..

Why you suppose distances tend to be greater in ballpark : Do the data suggest that population mean home-run distance is greatest in one ballpark? Why do you suppose the distances tend to be greater in that ballpark?

Difficult financial and economic episodes : The global recession that began in December 2007 has been described as, "one of the most difficult financial and economic episodes in modern history" by U.S. Federal Reserve Chairman Ben Bernake.

What is the bep : Cottage Industries Ltd expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed costs of operating the workshop for a month to £3,000.

Determine whether there is any difference in population mean : Assuming normality, conduct the appropriate hypothesis test to determine whether there is any difference in the population mean moisture content of bulk grain measured by chemical reaction and by distillation. Use a = 0.05.

(strengths-weaknesses-opportunities and threats : Develop a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for marketing and advertising the importance of higher education to not only women but other minorities in the United States.

Read the drawbridge exercise : Drawbridge Exercise and we'll reflect on who may be to blame. In doing so, we'll use our sociological imagination. For our discussion, please address the following:

Luxury car drivers with insufferable driving habits : Is there any evidence to suggest that the proportion of luxury-car drivers with insufferable driving habits is greater than the proportion of ordinary-car drivers with similar habits? Use a = 0.01.

User Account

All Pages

What is the bep

Reference no: EM131436470

Reference no: EM131436470

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT