Breakeven analysismanagement believes it can sell a new

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Breakeven Analysis

Management believes it can sell a new product for $250.

First Scale of Operations: fixed costs of production are estimated to be $50,000 and the variable costs are $215 a unit Second Scale of Operations: fixed costs of production are estimated to be at $150,000 and variable costs are $170 a unit

a. Complete the tables below for each scale of operations with the given levels of output and the relationships between quantity and fixed cost, quantity and variable costs, and quantity and total costs.

b. What is the breakeven number of units sold for each scale of operations? Note that partial units cannot be produced.

c. Assume that ½ of the fixed costs in each scale of operations is non-cash depreciation. What is the cash flow

Attachment:- Breakeven-Analysis.xlsx

Reference no: EM13381888

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