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birch company normally produces themselves 43,000 units of RG six each month. The selling price is $20 per unit, variable cost are $10 per unit,
birch company normally produces themselves 43,000 units of RG six each month. The selling price is $20 per unit, variable cost are $10 per unit, fix manufacturing and overhead cost total 160,000 per month, and fix selling cost total 50,000 per month.... RG-6 should return to normal. Due to the current low level of sales, B strike, which would reduce fixed manufacturing overhead costs by $4 the end of the shutdown would total $16,000. Because Birch Compan Required: 1. What is the financial advantage (disadvantage) if Birch closes its ow 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Cor open? Complete this question by entering your answers in the tabs belo What is the financial advantage (disadvantage) if Birch closes its own plant 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Complete this question by entering your answers in the tabs below. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Birch Company normally produces and selis 43,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $160,000 per month, and fixed selling costs total $50,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 9,000 units per month. Birch Company estimates the strikes will last for two months, after which time sales of RG-6 should return to normal, Oue to the current low level of sales, Birch Company is thinking about closing its own plant during the strike, which would reduce fixed manufacturing overhead costs by $49,000 per month and fixed selling costs by 10%. Start-up costs at the end of the shutdown would total $16,000. Because Birch Company uses Lean Production methods, no inventories are on hand. Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit soles for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Complete this question by entering your answers in the tabs below. Should Birch close the plant for two months
birch company normally produces themselves 43,000 units of RG six each month. The selling price is $20 per unit, variable cost are $10 per unit, fix manufacturing and overhead cost total 160,000 per month, and fix selling cost total 50,000 per month....
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