What is the companys breakeven point in units

Assignment Help Financial Accounting
Reference no: EM131158265

Spies Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750.

Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5.

At that level, Splurge Electronics expects it can sell 1,500 units next year.

What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant?

(Round your answer to the nearest whole number and show deatiled explaination.)

A. 1,250 units

B. 1,218 units

C. 650 units

D. 2,312 units

Reference no: EM131158265

Questions Cloud

What is multithreaded program : What is multithreaded program? What is the importance of thread synchronization?
What are the current setup social media : What are the current setup social media? What are business goal for socaial media?
How supervisors need to address the issues : Different races now or likely to be in the workforce of the future, based on the U.S. populations racial demographic changes. Particular issues that create tensions among the different groups. How supervisors need to address these i..
Descriptive analytics-predictive analytics : What is the difference between descriptive analytics, predictive analytics, and prescriptive analytics? Provide examples of each.
What is the companys breakeven point in units : What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant?
Describe the implementation stage for this project : Describe in the discussion of these six activities how each activity would be specifically planned for the individual project situation. Discuss the benefits of using defined and repeatable processes for accomplishing these activities for the imple..
Civil court trial processes : From the e-Activity, describe some of the processes that take place in a civil court trial.  Justify the length of time each process takes.
Design a storage and feed system for the sorbitol powder : Design a storage and feed system for the sorbitol powder. Sorbitol has average bulk density 1.48 kg/liter, and can be assumed to have an average particle size of 200 μm.
Forensic challenges regarding webmail : Analyze the forensic challenges regarding webmail that are stored in "the cloud" and determine whether or not you believe webmail is easier to analyze than standard client-server email solutions forensic specialists. Determine the legal concerns t..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Several conventional and strip mining operations

The PQR Coal Company has several conventional and strip mining operations. Recently, new legislation has made strip mining, which produces coal of high sulfur content, unprofitable, so those operations will be discontinued. Unfortunately, PQR purchas..

  Francis schaeffer contends that rome fell

Francis Schaeffer contends that Rome fell because it had no sufficient inward base. Do you agree or disagree with this statement? Clarify your answer. If you disagree, state why you believe that Rome fell. Can you see any illustrations in the world t..

  Determining the true cash balance

A Determining the true cash balance, starting with the unadjusted bank balance. Determine the true cash balance as of August 31 (Hint: it is not necessary to use all of the preceding items to determine the true balance.

  Determine the relevant costs for order for davenport

Determine the relevant costs for this order for the assembly division under both internal and outsourcing arrangements and determine the relevant costs for order for Davenport as a company under each of the sourcing arrangements.

  Determine what the net income

During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have b..

  Calculate the annual end-of-year loan payment

Joe borrowed RM15,000 at 14 percent annual rate of interest to be repaid over three years. The loan is amortized into three equal annual end-of-year payments. a. Calculate the annual end-of-year loan payment. b. Prepare a loan amortization schedule, ..

  Compute the revenues needed to earn the target net income

The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $ 456,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $ 9.50. Compute the rev..

  About the fifo and lifo

Analyze the following scenario: The Hospital for Ordinary Surgery uses pharmaceuticals for its patients. It started the year on January 1, with an inventory of 1,000 doses of an antibiotic drug that cost $17 per dose. On January 2, it purchased anoth..

  Define and describe net present value

For this assignment, you need to develop a capital budget. It is important to know what the cafe managers should consider within their capital budget. You must also define the key terms necessary to understand capital budgeting.

  Importance of the sox act

Importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it has helped the industry.

  The red division of the elsa company

Senior management is unhappy with the investment centre's return on investment. It asks the manager of the red division to submit plans to improve the ROI in the next year

  Prepare a cash budget

Enrich Company expects to have a cash balance of $65,470 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.

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!

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