Brookehammilton
Oct 17, 2011, 09:53 AM
Here are my numbers it is for a manufacturing company.
Velcro- annual sales volume, 100,000, unit selling price, 1.65, variable cost per unit 1.25
Metal- annual sales volume, 200,000, unit selling price, 1.50, variable cost per unit .70
NYLON- annual sales volume, 400,000, unit selling price, 85, variable cost per unit .25
FIXED EXPENSES are 400, 000
This is the problem I have to figure out. I am about to cry, my professor does not teach us how to do this stuff, and I can not find it in anywhere in my book.
There are no beg or end inventory, or any inventory at all.
1) what is the companys overall break -even point.
2) of the totall fixed costs, 20000 could be dropped if welcro were dropped, 80000 could be dropped if metal was dropped, and 60000 if nylon was dropped. The remaining fixed costs of 240000 consist of common fixed costs such as admin salaries, and rent on the building that could be only avoided by going out of business. So , what is the break even point in units for each produt.
If the company sells exactly the break even quantity of each product what will be the overall profit of the company, explain.
Velcro- annual sales volume, 100,000, unit selling price, 1.65, variable cost per unit 1.25
Metal- annual sales volume, 200,000, unit selling price, 1.50, variable cost per unit .70
NYLON- annual sales volume, 400,000, unit selling price, 85, variable cost per unit .25
FIXED EXPENSES are 400, 000
This is the problem I have to figure out. I am about to cry, my professor does not teach us how to do this stuff, and I can not find it in anywhere in my book.
There are no beg or end inventory, or any inventory at all.
1) what is the companys overall break -even point.
2) of the totall fixed costs, 20000 could be dropped if welcro were dropped, 80000 could be dropped if metal was dropped, and 60000 if nylon was dropped. The remaining fixed costs of 240000 consist of common fixed costs such as admin salaries, and rent on the building that could be only avoided by going out of business. So , what is the break even point in units for each produt.
If the company sells exactly the break even quantity of each product what will be the overall profit of the company, explain.