If a new product does not require any new fixed costs because the company utilizes the existing

Question:

If a new product does not require any new fixed costs because the company utilizes the existing capacity of facilities and personnel, what is the breakeven point?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

See More Books

Question Posted: Apr 18, 2013 04:11 AM

See More Questions

What is the breakeven point in units?
What is the breakeven point in units, assuming a products selling price is $100, fixed costs are $8,000, variable costs are $20, and operating income is $32,000? a. 100 units b. 300 units c. 400...
If a company is trying to find the breakeven point for multiple products that sell simultaneously, what consideration must be taken into account?
The following data has been extracted from last quarter's budget of Elise Ltd, which manufactures and sells a single product. January February March Production units 6200 6200 5800 Sales units 5900...
Show, by writing a suitable sequence of reactions, how you could prepare pentobarbital from diethyl malonate. (The structure of pentobarbital was shown in this section.)
Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $ 6 4 , 0 0 0 and $ 1 2 , 0 0 0 , respectively. In addition to their salaries, they received...
Transferred-in costs, weighted-average and FIFO. (Chapter Appendix I) Frito-Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four...
Warren Buffett, arguably the most famous investor in the United States, is the CEO of Berkshire Hathaway (BRK), a company that has enjoyed great success in terms of its stock price. Below are the...
Do part of the financial analysis project. Using the correct financial ratios evaluate the company with regard to its short-term liquidity, long-term solvency and profitability. See pages 604 and 605...
A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse....
Why might the percentage budget cut for a not-for-profit agency not equal the resultant change in the activity level?
Why do management accountants use sensitivity analysis?
What do we generally call an area in a business where productive resources are organized and work is completed?
The COVID pandemic has created a crisis for many restaurateurs. The author of one of this week's readings has a suggestion that he thinks could help restaurants survive the crisis. Read the article...
Evidence is used to make a decision whenever the decision follows directly from the evidence (Tingling & Brydon, 2010). This is where so many people get it wrong or going by their personal beliefs or...
Pick 2 countries, find the price of a Big Mac in each country (if you want to pick another good/service, go ahead), express the price in the local currency, then with the help of exchange rate,...
Your task is to educate the public about the role of the Fed in the economy. Role: You are an economic issues reporter for PBS. Audience: Television audience of The Newshour on PBS Situation: Your...
Trade Queens Limited is a highly successful FMCG in Zambia. Salient points from the Year-end report indicate the following: Operating profit for the 2022 financial year is up 60% year on year,...
Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste...
Chloroplasts are illuminated until the levels of the Calvin cycle intermediates reach a steady state. The light is then turned off. How does the level of RuBP vary after this point?
At your future job, you get an unexpected raise from $50,000 a year to $75,000 a year. How do your consumption and savings change? Provide a rough estimate of your marginal propensity to consume.
What is value? Why is it critical for the firm to create value? How does it do so?
What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating...
What are capabilities? How do firms create capabilities?
Draw an interaction diagram for the following contract: If a collaboration diagram is used, be sure that all messages' sequence numbers are shown. Contract: Scheduling a Flight Operation:...
Columbus Industries makes a product that sells for $37 a unit. The product has a $29 per unit variable cost and total fixed costs of $10,000. At budgeted sales of 1,950 units, the margin of safety...
18. Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50. The intrinsic value of your option is:

If a new product does not require any new fixed costs because the company utilizes the existing

Question:

Step by Step Answer:

Only include fixed costs that are relevant for a shortterm analysi...View the full answer

Cost management a strategic approach

Students also viewed these Management Leadership questions