Break-even point in units for company

Assignment Help Project Management

Reference no: EM1338436

Rocky Mount Metals Company manufactures an assortment of wood-burning stoves. The average selling price for the various units is $500. The associated variable cost is $350 per unit. Fixed costs for the firm average $180,000 annually.

a. What is the break-even point in units for the company?

b. What is the dollar sales volume the firm must achieve to reach the break-even point?

c. What is the degree of operating leverage for a production and sales level of 5,000 units for the firm? (Calculate to three decimal places.)

d. What will be the projected effect on earnings before interest and taxes if the firm's sales level should increase by 20 percent from the volume noted in part c?

Reference no: EM1338436

Questions Cloud

Explain why does the us steel industry want : Explain why does the US steel industry want a tariff on imported steel. Show the US steel market with and without a tariff, showing graphically why they will like a tariff.

Steinberg corporation and dietrich corporation : Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will remain in business for one more year. Supposing there are no costs of bankruptcy, what is the market value of each firm's d..

Explain important information about help with homework : Explain Important information about Help with homework question and What are the various sources of funding available to entrepreneurs

Define the structures and properties of carbohydrates : Carbohydrates, lipids, and proteins are important biomolecules. explain the structures and properties of carbohydrates, lipids, and proteins including the different forms of these biomolecules that are present within the body.

Break-even point in units for company : What is the break-even point in units for the company?

Christian church characteristics : What were the main characteristics of the early Christian Church up to the 4th century?

Elucidate action in the open market would the fed : Elucidate action in the open market would the Fed have to take to prevent bank reserves from falling.

Test at the .05 level of significance : Research at the University of Toledo indicates that 50 percent of the students change their major area of study after their first year in a program. Has there been a significant decrease in the proportion of students who change their major after th..

Define how amino acids from proteins : State the key products of the Kreb's Cycle and how various of each there are starting from 1 glucose molecule.

User Account

All Pages