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Identify each of the following expenses in Corporation as Fixed or Variable costs (expenses are in thousands, unless otherwise noted). AMT F/V AMT FN COST
Identify each of the following expenses in Corporation as Fixed or Variable costs (expenses are in thousands, unless otherwise noted). AMT F/V AMT FN COST Cost of Goods COST Sales/Service Reps $250/unit 60 Marketing Expense 125 HR Programs 0% of sales Operations Technology 65 Depreciation 190 New Product Research 65 Overhead 200 Quality Programs 0 1. Based on your choices, what is the breakeven point if the unit price is $500? Use the following formula: breakeven units = fixed costs / (unit price - unit variable cost) 2. Now double Marketing Expense and Sales/Service Reps, start Quality Programs at a cost of $50, and set HR Programs to 2% of sales. What is the new breakeven? 10 Corporation Assignments STUDENT/TEAM 3. If current capacity is 3,610 units, will you be able to reach breakeven in each case
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