Question 3 [20 marks] (a) Using a hand-drawn simple graph with proper labelling, explain the break-even...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665342f112798_657665342f10d2bd.jpg)
Transcribed Image Text:
Question 3 [20 marks] (a) Using a hand-drawn simple graph with proper labelling, explain the break-even analysis for a manufacturing industry. [5 marks] (b) A manufacturer of power garden tools is planning to introduce a new power shear that will sell for $20. The fixed cost for 1 year of operation is $96,000 and the variable cost per unit is $12. If the planned volume of sales is 15,000 units for the period, determine: (i) break-even volume [5 marks] (ii) profit at the planned volume [5 marks] (iii) What should be the price per unit so that the manufacturer breaks even with a sale of $185000, assuming that the fixed cost is the same. [5 marks] Question 3 [20 marks] (a) Using a hand-drawn simple graph with proper labelling, explain the break-even analysis for a manufacturing industry. [5 marks] (b) A manufacturer of power garden tools is planning to introduce a new power shear that will sell for $20. The fixed cost for 1 year of operation is $96,000 and the variable cost per unit is $12. If the planned volume of sales is 15,000 units for the period, determine: (i) break-even volume [5 marks] (ii) profit at the planned volume [5 marks] (iii) What should be the price per unit so that the manufacturer breaks even with a sale of $185000, assuming that the fixed cost is the same. [5 marks]
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A patent gave Sony a legal monopoly to produce a robot dog called Aibo ( eye- BO). The Chihuahua- size pooch robot can sit, beg, chase balls, dance, and play an electronic tune. When Sony started...
-
Future value \(=\$ 300,000\), annual interest rate \(=3.99 \%\), compounded annually, for 15 years Compute the present value of the accounts with the given conditions.
-
Obtain a copy of the annual report and accounts for two public limited companies and compare the information they disclose on corporate governance. Write a summary analysing the differences in the...
-
Suppose that the Lai Jean Co. expects before tax earnings of 5 million this coming year, assuming no liability losses. However, there is a 2 percent chance that Lai will lose a $10 million lawsuit...
-
The expected cost of Betazine therapy is $544. It is effective 57 percent of the time, with a 6 percent chance of an adverse drug reaction. The following table shows data for Alphazine, a new...
-
Given a database of the results of an election, find the number of seats won by each party. There are some rules to going about this: There are many constituencies in a state and many candidates who...
-
61 pts Taylor insisted that the advantages of constant surveillance include which of the following? Group of answer choices more accurate, unbiased information concerning an event More accessible...
-
The Spotless Automobile Corporation is contemplating the acquisition of an automatic car wash. The following information is relevant: The cost of the car wash is $160,000 The anticipated revenue from...
-
Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$20 par value, 100,000 shares authorized, 45,000 shares issued and...
-
What approaches can organizations adopt to address systemic inequalities and structural barriers that perpetuate disparities in representation and opportunity, aligning diversity and inclusion...
-
Intelligence is instead more strongly linked to the brain size relative to the body size . If a large brain is housed in a small body, there is less low-level signal processing and control that the...
-
Waterway Co. purchased 63,5% Carla Vista Company bonds for $63000 cash. Interest is payable annually on January 1. If 31 of the securities are sold on January 1 for $33000, the entry would include a...
-
Hi I was wondering if I did this correctly. My work is abowen2_TMV and the case and the questions are on the other two documents. Thank you.
-
Advanced: Calculation of optimum quantity and prices for joint products using differential calculus plus a discussion of joint cost allocations Nuts pic produces alpha and beta in two stages. The...
-
calculate the value of perfect information; LO1
-
construct a decision tree when there is a range of alternatives and possible outcomes; LO1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App