User Account

All Pages

What is the breakeven point in pillows

Assignment Help Finance Basics
Reference no: EM131145520

NYRB sells pillows to retailers for an average of $30 each. The variable cost of each 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 considering a move to Miami, FL because the weather is nicer. This may cause changes in the selling price, variable costs, and fixed costs. They expect the sales volume to remain the same. 

Required:

a. What is the breakeven point in pillows?

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

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

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

Reference no: EM131145520

Questions Cloud

Which of the following are direct foreign investments : A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm.
Write a program that substitutes an overloaded : Write a program that substitutes an overloaded += operator for the overloaded + operator in the STRPLUS program in this chapter.
Write a c++ statement that stores sunny day : Write a C++ statement that stores " Sunny Day" in str1 - Write a C++ statement that stores the length of str1 into the int variable length.
Derive and graph home''s import demand schedule : Derive and graph Home's import demand schedule. What would the price of wheat be in the absence of trade?
What is the breakeven point in pillows : What is the breakeven point in pillows? What is the margin of safety, assuming sales total $60,000? What is the breakeven level in pillows, assuming variable costs increase by 20%?
What concepts are crucial when recruiting team members : In a minimum of 500 words, document a succession plan for an employee (e.g., IT Developer, Maintenance Crew, Training Specialist, CEO) of your chosen firm. What concepts are crucial when recruiting team members? Be sure to address the following qu..
Case analysis - harley-davidson inc : Case Analysis: Harley-Davidson Inc. in May 2015, Read the case, "Harley-Davidson Inc. in May 2015" on page 502-514. Use the case analysis format provided below to identify and address the problems and provide several suggested solutions that the H..
Develop a chart that shows the project : Prepare a list showing all tasks and their durations - Analyze the fact situation carefully to determine which tasks are concurrent and which ones are dependent on other tasks.
Calculate the equilibrium number of firms in the u.s. : Calculate the equilibrium number of firms in the U.S. and European automobile markets without trade.

Reviews

Write a Review

Finance Basics Questions & Answers

  Information about value of money

What TVM concept (s) is represented in the situation? What is the value of the money represented by the situation? How did you arrive at the value?

  What is the net present value npv of a long-term investment

beyond personal resources what are other funding options for small businesses? why dont more entrepreneurs

  You have 4629802 in a brokerage account and you plan to

you have 46298.02 in a brokerage account and you plan to deposit an additional 5500 at the end of every future year

  After analyzing the data prepare an income statement and a

this information relates to alexis co. for the year 2012.retained earnings january 1 201267000advertising

  What must it do to achieve this objective

Using the Gordon Growth Model, the CAPM and assuming equilibrium in the equity market, express Beta as a function of the other variables. If a firm targets a B = 1.25, what must it do to achieve this objective? If it is not possible to do so, demonst..

  An analyst has modeled the stock of crisp trucking using a

an analyst has modeled the stock of crisp trucking using a two-factor apt model. the risk-free rate is 6 the expected

  What does operating margin tell you about the organization

what does operating margin tell you about the organization and how would you calculate this

  Market on a downward trend

The value at which an investor will sell a security. The value a purchaser is willing to pay for a security is the bid. The difference between the ask and bid price is the spread.

  Henry garrison starts the month with a balance on his

henry garrison starts the month with a balance on his credit card of 1130. the average daily balance for the month

  What would you advise bruce about his need for additional

Bruce Kaplan, a 35-year-old computer programmer, earns $72,000 a year. His monthly take- home pay is $3,750. His wife, Barbara, works part- time at their children's elementary school but receives no benefits. Under state law, Bruce's employer contrib..

  Irr of a perpetuity project

We saw in class that the IRR of a perpetuity project is exactly equal to the inverse of the payback period. I also noted that for non-perpetuity projects the relationship IRR = 1/PB is only an approximation, and that this approximation improves as..

  Define cash flow accounting income incremental cash flow

Define each of the following terms: a. Cash flow; accounting income b. Incremental cash flow; sunk cost; opportunity cost

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