Basic business tool that mbas

Reference no: EM131800356

Break-even analysis is another basic business tool that MBAs are expected to master. Read the attached file and use it to answer the following question

A firm in its plans for a new facility is considering two production technologies, A and B. Technology A involves higher variable costs techniques; technology B relies on higher fixed cost production techniques. The unit product price f, average variable cost, and fixed costs for technology A are $.50, $.25, and $100, respectively; for technology B these values are $.50, $.10, and $200, respectively.

Calculate the break-even volume for both technologies, then graph both options to show where total costs intersects total revenue.

Reference no: EM131800356

Questions Cloud

Calculate allowable itemized or standard deduction amount : Steve and Sue are married with three dependent children. Their 2015 joint income tax return shows $389,000 of AGI and $60,000 of itemized deductions

Under what sorts of circumstances are horizontal mergers : How do mergers and/or acquisitions contribute to enhancing a company's position (and possibly change some of the five forces of the industry)?

Average length of the waiting line : What is the average length of the waiting line? (Round your answer to 2 decimal places.)

Postponing product differentiation across all products : What are some scenarios in which postponing product differentiation across all products may not be profitable? How can tailored postponement help.

Basic business tool that mbas : Break-even analysis is another basic business tool that MBAs are expected to master. Read the attached file and use it to answer the following question

How valuable is a highly satisfied customer to starbucks : Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied?

Calculate the equivalent production for the month : It had 500 units of which 40% were complete and still in process at the end of the month. Equivalent production for the month was

Briefly describe how the clerical : Briefly describe how the Clerical, Counseling, and Industrial models of the proper purposes, roles, and functions of Human Resources Departments

Discuss what sections make up the current annual report : What sections make up the current Annual Report, Why are they important

User Account

All Pages