FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per unit of $21. The company has fixed

Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per unit of $21. The company has fixed operating costs of $1,050,000.

(a)Calculate the firm's operating breakeven point in units.(b)Calculate the firm's operating breakeven point in dollars.(c)Using 100,000 units as a base, what is the firm's degree of operating leverage?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics: An Intuitive Approach With Calculus

Microeconomics: An Intuitive Approach With Calculus

Authors: Thomas Nechyba

2nd Edition

1305650468, 978-1305650466

More Books

Students also viewed these Finance questions

Question

★★★★★
Alfred Road has reached his 70th birthday and is ready to retire. Mr. Road has no formal training in finance but has saved his money and invested carefully. Mr. Road owns his home- the mortgage is...

Answered: 1 week ago

Question

★★★★★
Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance...

Answered: 1 week ago

Question

★★★★★
Under what conditions is the sampling distribution of the two-sample ???? statistic approximated by the ???? distribution?

Answered: 1 week ago

Question

★★★★★
Chloe and Emma start a new business, Cement Sidewalks and Accessories (CSA), during the current year. CSA is organized as a partnership. Chloe owns 40% of CSA; Emma owns the remaining 60%. Chloe and...

Answered: 1 week ago

Question

★★★★★
Find context-free grammars for the following languages: L3 = {a^n ww^R b^n : w ,n>=0} *(Q *D)

Answered: 1 week ago

Question

★★★★★
5. The following data pertain to last month's operations: Selling price Variable production cost Fixed production cost Variable selling and administrative expense. Fixed selling and administrative...

Answered: 1 week ago

Question

★★★★★
A spaceship is orbiting around the Earth. The mass of Earth is 5.98 x 1024 kg, and the mass of the spaceship is 8600 kg. Let R be the distance from the center of Earth. If this distance changes from...

Answered: 1 week ago

Question

★★★★★
5. Two events occur at positions on the x-axis separated by a distance of Ax and by a time interval of At, according to one observer (Ann). Ann notes that when the first event occurs (a flash of...

Answered: 1 week ago

Question

★★★★★
A transverse mechanical wave is traveling along a string lying along the x-axis. The displacement of the string as a function of position and time, y(x, t), is described by the following equation:...

Answered: 1 week ago

Question

★★★★★
Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio....

Answered: 1 week ago

Question

★★★★★
Which of the following steps is not associated with the "Silent Phase" of the Change Process? Group of answer choices Generate urgency Maintaining motivation Build coalition Create vision

Answered: 1 week ago

Question

★★★★★
Woven Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $15.00 per hour Payroll taxes are 12% of the basic direct labor rate, while fringe...

Answered: 1 week ago

Question

★★★★★
The senders expertise; certification, i.e. the senders educational background

Answered: 1 week ago

Question

★★★★★
Context, i.e. the context of the information presented and received

Answered: 1 week ago

Question

★★★★★
1. To gain insight into why we believe more in one type of information than another.

Answered: 1 week ago

Previous Question Next Question