Solve breakeven problem, Operation Management

Assignment Help:

Breakeven Problem

1. Avila Manufacturing plans to increase capacity by adding new equipment. They have received two proposals.

Fixed CostVariable Cost/Unit

Proposal A $32,000 $12.00

Proposal B $50,000 $10.00

The revenue generated by each unit is $20.00.

a. What is the break-even point in units (when profit = zero) for Proposal A?

b. What is the break-even point in units (when profit = zero) for Proposal B?

c. Draw the lines represented by both Proposal A and B on an X-Y coordinate graph with Units on the X axis and Profits on the Y axis.
Use the form y = mx + b or

Profit = (Revenue/unit - Variable cost/unit) * Units - Fixed Cost


Related Discussions:- Solve breakeven problem

Explain ways you expect to use format design, Commercial and personal Websi...

Commercial and personal Websites, as well as print media, design their formats and include visuals for optimal audience appeal. Select a Website or print medium for this reflective

Methods used in manufacturing - operation strategy, Methods Used in Manufac...

Methods Used in Manufacturing - Operation Strategy Many of the methods used in manufacturing are just as applicable; however a greater degree of customisation will be required

Explain what is the value creation frontier, 1.Why does each generic busine...

1.Why does each generic business model require a difficult set of business-level strategies? Give examples of pairs of companies in: (a) the computer industry; (b) the electronics

Describe key issues and concerns, As area sales manager for a company manuf...

As area sales manager for a company manufacturing and marketing outboard engines, you have been assigned the responsibility of conducting a research study to estimate the sales pot

Calculate the total cost of ordering and carrying clay pots, 1. Garden Vari...

1. Garden Variety Flower Shop uses 1000 clay pots a month. The pots are purchased at $3 each. Annual carrying costs per pot are estimated to be 25% of cost, and ordering costs are

North west corner rule, advantages and disadvantages of north west corner r...

advantages and disadvantages of north west corner rule

Explain how can data mining be used to accomplish objective, Your company w...

Your company wants to increase revenues from its existing customers. How can data mining be used to accomplish his objective?

Explain what is the average worker in percentage, what is the average worke...

what is the average worker in percentage from manufacturing industry

Reliable delivery - customers needs for a product, Reliable Delivery - Cust...

Reliable Delivery - Customers Needs for a Product The degree to which the operations system delivers its products or services on time. DHL can successfully charge premium parc

Problems that can plague groups as organizations is groupth, One of the rec...

One of the recognized problems that can plague groups and organizations is groupthink. Do some research on the groupthink phenomenon? What is it? When does it occur? What are some

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