Breakeven, Financial Accounting

Assignment Help:
Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units:

Direct materials $ 900
Direct labor 360
Manufacturing overhead* 610
Selling expenses (50% variable) 300
Administrative expenses** 290
Total per unit $2,460

*Note that per unit manufacturing overhead costs include $840,000 fixed costs
**Note that per unit administrative expenses include $500,000 fixed costs.

A company recently approached Baseball’s management about buying 200 units of product. Baseball currently sells its product to dealers for $2,600 per unit. Capacity is sufficient to produce the extra 200 units. No selling expenses would be incurred on the special order.

What is the minimum price Baseball should charge just to break even on the special order?

Related Discussions:- Breakeven

Leverage, evaluate the importance of leverage in financial management of a...

evaluate the importance of leverage in financial management of a small scale company

Break-even point, am trying to figure out the break-even point in units usi...

am trying to figure out the break-even point in units using the mathmatical equation. the numbers i have are unit selling price $520, the variable costs per unit are $312 and fina

Consolidated income statement and consolidated statement , CONSOLIDATED INC...

CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF CHANGES IN EQUITY     The consolidated income statement follows similar principles as those of the consolidated balanc

How much are joe''s shares worth after the stock split?, Joe Shareholder ow...

Joe Shareholder owns 100 shares of Peach Company stock which is currently selling for $100 per share. Peach declares a 2-1 stock split. How much are Joe's shares worth after the st

Identify total proceeds from new securitizations, Refer to Note 8, Securiti...

Refer to Note 8, Securitization Transactions (pp. 78-80) and an extract from Note 2, Additional Balance Sheet and Cash Flow Information (p. 72-73) from the Consolidated Financial S

Net streams of payments, Swap - Financial contract in which 2 parties agree...

Swap - Financial contract in which 2 parties agree to exchange net streams of payments over a specified period. Payments are normally determined by applying different indices (for

Termination of office of trustee-bankruptcy, TERMINATION OF OFFICE OF TRUST...

TERMINATION OF OFFICE OF TRUSTEE The trustee may vacate office in the following ways: 1. Resignation : He may resign at a meeting of creditors and with their consent. 2.

Define risk-adjusted discount rates, Q. Define Risk-adjusted discount rates...

Q. Define Risk-adjusted discount rates? One technique in this heading is the assignment of investment projects to one of a set of risk classes all of which has a different disc

What is bargain purchase, What is bargain purchase? Financial assets a...

What is bargain purchase? Financial assets acquired for less than FMV. In a bargain purchase BC, a corporate entity is acquired by another for an amount that is less than the

Write Your Message!

Captcha
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