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The diagrams shows the sales and costs in relation to the activity volume (Breakeven relations) of a company operating and selling bicycles. On the left
The diagrams shows the sales and costs in relation to the activity volume (Breakeven relations) of a company operating and selling bicycles. On the left the break even diagram shows that the manager has reduced the variable cost from 30 (as in the right diagram) to $24 (as in the left diagram) explain the difference that happened and write your thoughts?
Break Even Relations Reduced Variable Cost 0 0 Activity Volume (Units)| Fixed Cost 300000 10000 300000 20000 300000 30000 300000 40000 300000 50000 300000 Variable Cost] Total Cost | Revenue 300000 300000 600000 400000 600000 900000 800000 900000 1200000 1200000 1200000 1500000 1600000 1500000 1800000 2000000 Variable Cost per unit Selling Price per unit Fixed Cost 30 40 300000 Activity Volume (Units) | Fixed Cost 0 300000 10000 300000 20000 300000 30000 300000 40000 300000 50000 300000 Variable Cost 0 240000 480000 720000 960000 1200000 Total Cost | Revenue 300000 540000 400000 780000 800000 1020000 1200000 1260000 1600000 1500000 2000000 Variable Cost per unit Selling Price per unit Fixed Cost 24 40 300000 Break Even Point 30000 Break Even Point 18750 Break Even Break Even 2500000 2500000 2000000 2000000 1500000 1500000 1000000 1000000 500000 500000 0 0 10000 20000 30000 40000 50000 0 10000 20000 30000 40000 50000 - Fixed Cost Variable Cost Total Cost Revenue - Fixed Cost Variable Cost Total Cost Revenue Caso11_5 01 GAB Cac Brook Svon DiarameStep by Step Solution
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