Calculate breakeven volume if total fixed cost increases

Assignment Help Financial Management

Reference no: EM131884033

Breakeven Analysis

1. Traditional Breakeven

Calculate total fixed cost (TFC) and average variable cost (AVC) using regression given the following data:

Admissions Total Cost

200 $1,499,900

400 $2,000,400

600 $2,500,700

800 $2,999,400

1,000 $3,500,400

AVC = _________

TFC = _________

Net Income = $50,000

Price = $4,200

Calculate the breakeven (with net income) volume. Create an income statement proving your calculated volume produces the desired net income. What will happen to net income if actual volume is 10 cases more than breakeven volume?

Calculate breakeven volume if total fixed cost increases by 10%.

Calculate breakeven volume if average cost increases by 10% with the original (part A) TFC.

Complete the table below and create a breakeven graph for 200, 400, 600, 800, and 1,000 admissions.

Total Variable Cost Total Cost

Admissions TFC TVC TC Net Income

200 __________ __________ __________ __________

400 __________ __________ __________ __________

600 __________ __________ __________ __________

800 __________ __________ __________ __________

1,000 __________ __________ __________ __________

Reference no: EM131884033

Questions Cloud

Conduct additional research to gather sufficient information : Conduct additional research to gather sufficient information to familiarize yourself with the facts of the case and be sure to justify/support your position.

Run the appropriate analysis of the data : Use the following information to complete the assignment. While APA format is not required for the body of this assignment, solid academic writing is expected.

Overall returns required to grow money and create wealth : What do these rates say about the level of overall returns required to grow money and create wealth?

Same thing as earnings before interest and taxes : Operating income is not the same thing as earnings before interest and taxes (EBIT).

Calculate breakeven volume if total fixed cost increases : Create an income statement proving your calculated volume produces the desired net income. Calculate breakeven volume if total fixed cost increases by 10%.

Develop a case that representative of American literature : Develop for me a case that one of them or both are representative of American literature. Make your case and defend it

Define strengths and weaknesses of each research design : Forensic psychology covers a very broad body of knowledge and has many branches. Forensic psychology professionals often choose an area of interest.

The london interbank offered rate : The London Interbank Offered Rate (LIBOR)

What investment can be justified for the new surface : If maintenance costs are the only saving, what investment can be justified for the new surface? Assume interest at 5%.

User Account

All Pages