Question
XYZ corporation has calculated that it has fixed costs that consist of its lease, depreciation of its assets, executive salaries, and property taxes. Those fixed
XYZ corporation has calculated that it has fixed costs that consist of its lease, depreciation of its assets, executive salaries, and property taxes. Those fixed costs add up to $60 000. Their product is the widget. Their variable costs associated with producing the widget are raw materials, factory labor and sales commission. Variable costs have been calculated to be $0.80 per unit. The widget price is $2 each.
A) What is the break even point for XYZ Corporation's product, the widget?
B) What will be the break even point if sales increase to 15%?
C) What will be the break even point if sales decrease by 5%?
D) What is the relationship between fixed costs, Variable costs, Price and Volume?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A To calculate the breakeven point for XYZ Corporations product the widget we need to determine the number of units they need to sell in order to cove...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Document Format ( 2 attachments)
6641f16d7a387_987175.pdf
180 KBs PDF File
6641f16d7a387_987175.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
