Ask Experts Questions for FREE Help !
Ask
    JennKiura's Avatar
    JennKiura Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 5, 2007, 04:51 PM
    Break even analysis
    Fre has decided to expand his garden supply manufacturing business. He has an available factory site that is presently costing him $40,000 per year in taxes and maintenance. He has made a deal with stellar supply company to provide him with the necessary material to produce 1000 garden hoses. Stellar has agreed to supply the material for $6000 less 2% for quantity discount. Fred's shop steward has informed him that labour costs to make the capacity 1000 garden hoses will amount to $10,000.

    a) fred expects that it will take 3 months to produce the garden hoses and he intends to market them at $29.99 per hose. How many hoses must fred sell to break even?
    kieran6479's Avatar
    kieran6479 Posts: 4, Reputation: 1
    New Member
     
    #2

    Jul 7, 2007, 04:50 PM
    What do YOU think the answer is?

    Make an attempt at the answer, and then we will assist you.
    maheshwari's Avatar
    maheshwari Posts: 5, Reputation: 1
    New Member
     
    #3

    Jul 9, 2007, 08:04 AM
    According to Me Break Even Is the level of profit before tax, where equity shareholders are neithr benefited nor making any type of losses. They r at a level where there is no profit or no loss - Maheshwari Ahuja (CA Student) .

    For further queries contact me at [email protected]
    :)

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Investment analysis [ 1 Answers ]

A colleague argues that the resource a firm owns already should not be considered in investment analysis . Do you agree

C-V-P Analysis [ 1 Answers ]

If I have the average cost of an item, the average price of an item, the selling expense of the item, the building rent for the company and a fixed salary for the employee, how can I find out how many of the item I would need to sell in order to break even? I also need to figure out how many items...


View more questions Search