Question

Rocky Mount Metal Company manufactura un surtido de estufas. El precio promedio de venta de varias unidades es de $500. Los costos variables asociados son $350 por unidad. Los costos fijos anuales promedian $180,000. a. ¿Cuál es el BEP en unidades para la compañía? b. ¿Cuál es el BEP en volumen de ventas en dólares para la compañía? c. ¿Cuál es el grado de apalancamiento operacional para un nivel de producción y ventas de 5,000 unidades para la compañía? (a 3 lugares decimales) d. Cuál será el efecto proyectado en el EBIT, si el nivel de ventas de la firma incrementa por 20% del volumen en la parte (c)?

Answer 1

Selling Price per unit = $500
Variable Cost per unit = $350
Fixed Costs = $180,000

Answer a.

Contribution Margin per unit = Selling Price per unit - Variable Cost per unit
Contribution Margin per unit = $500 - $350
Contribution Margin per unit = $150

Breakeven Point in units = Fixed Costs / Contribution Margin per unit
Breakeven Point in units = $180,000 / $150
Breakeven Point in units = 1,200

Answer b.

Breakeven Point in dollar = Breakeven Point in units * Selling Price per unit
Breakeven Point in dollar = 1,200 * $500
Breakeven Point in dollar = $600,000

Answer c.

Units Sold = 5,000

Contribution Margin = Contribution Margin per unit * Units Sold
Contribution Margin = $150 * 5,000
Contribution Margin = $750,000

Net Operating Income = Contribution Margin - Fixed Costs
Net Operating Income = $750,000 - $180,000
Net Operating Income = $570,000

Degree of Operating Leverage = Contribution Margin / Net Operating Income
Degree of Operating Leverage = $750,000 / $570,000
Degree of Operating Leverage = 1.316

Answer d.

Percentage Change in Sales = 20%

Degree of Operating Leverage = Percentage Change in EBIT / Percentage Change in Sales
1.316 = Percentage Change in EBIT / 20%
Percentage Change in EBIT = 26.32%

EBIT will increase by 26.32% if sales volume increases by 20%