Question
In: Finance
Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities...
Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (Labor intensive versus capital intensive).
Solutions
jeff jeffy answered 4 months agoRelated Solutions
12.4 (Break even point and operating leverage) King Inc. is a health wine company in China....
12.4 (Break even point and operating leverage) King Inc.
is a health wine company in China. The average selling price of its
finished product is 38 Chinese Yuan Renminbi per bottle (500ml/
bottle). The variable cost of the same bottle of wine is RMB 15.
King Inc. incurs fixed costs of RMB 175 million per
year.
What is the break even point in bottles of health wine
for the company?
What is the RMB sales volume the firm must achieve...
(Break-even point and operating leverage) Footwear Inc. manufactures a complete line of men's and women's dress...
(Break-even point and operating leverage) Footwear Inc.
manufactures a complete line of men's and women's dress shoes for
independent merchants. The average selling price of its finished
product is $85 per pair. The variable cost for this same pair of
shoes is $50 . Footwear Inc. incurs fixed costs of $190 comma 000
per year. a. What is the break-even point in pairs of shoes sold
for the company? b. What is the dollar sales volume the firm must
achieve...
(Break-even point and operating leverage) Footwear Inc. manufactures a complete line of men's and women's dress...
(Break-even
point and operating
leverage)
Footwear Inc. manufactures a complete line of men's and
women's dress shoes for independent merchants. The average selling
price of its finished product is
$75
per pair. The variable cost for this same pair of shoes is
$65
.
Footwear Inc. incurs fixed costs of
$170 comma 000
per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve...
(Break-even point and operating leverage) Footwear Inc. manufactures a complete line of men's and women's dress...
(Break-even point and operating leverage)
Footwear Inc. manufactures a complete line of men's and
women's dress shoes for independent merchants. The average selling
price of its finished product is $95 per pair. The variable cost
for this same pair of shoes is $50. Footwear Inc. incurs fixed
costs of $180,000 per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve to
reach the...
(Break-even point and operating leverage) Footwear Inc. manufactures a complete line of men's and women's dress...
(Break-even
point and operating
leverage)
Footwear Inc. manufactures a complete line of men's and
women's dress shoes for independent merchants. The average selling
price of its finished product is
$85
per pair. The variable cost for this same pair of shoes is
$60
.
Footwear Inc. incurs fixed costs of
$180 comma 000
per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve...
how does the break-even point fit into this discussion? What is the break-even point? Why is...
how does the break-even point fit into this discussion? What is
the break-even point? Why is it an important concept in managerial
accounting? What are its uses?
Contribution Margin, Break-Even Units, Break-Even Sales, Margin of Safety, Degree of Operating Leverage Aldovar Company produces...
Contribution Margin, Break-Even Units, Break-Even Sales, Margin
of Safety, Degree of Operating Leverage
Aldovar Company produces a variety of chemicals. One division
makes reagents for laboratories. The division's projected income
statement for the coming year is:
Sales (203,000 units @ $70)
$14,210,000
Total variable cost
8,120,000
Contribution margin
$6,090,000
Total fixed cost
4,945,500
Operating income
$1,144,500
Required:
1. Compute the contribution margin per unit,
and calculate the break-even point in units. Calculate the
contribution margin ratio and use it to...
Break-Even Point
S.S Corporation had sales of Rs. 4,500,000. The fixed expense was Rs. 1,200,000 and variable expense totaled Rs. 1,800,000. You are required to calculate Break-Even Point for S.S Corporation.
Q2. (a) WHAT IS BREAK - EVEN POINT? (b) EXPLAIN THE IMPORTANT MANAGERIAL USES OF BREAK-EVEN...
Q2. (a) WHAT IS BREAK - EVEN POINT? (b) EXPLAIN THE IMPORTANT
MANAGERIAL USES OF BREAK-EVEN ANALYSIS.
a. How are contribution margin and break even related? b. What happens to break even point...
a. How are contribution margin and break even related?
b. What happens to break even point if variable cost per unit
changes, if fixed cost changes?
c. Explain the degree of operating leverage and how it is
related to a companies profit risk.
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