Calculate the break even point

Assignment Help Financial Management

Reference no: EM131817129

Corner creations by Dana Inc sells two products, A and B. The price per unit is 12$ for A and 8$ for B. The variable cost is 6$ for A and 4$ for B. Total fixed costs on both products are 80,000 Hint: Average price per unit = (12+8)/2. Calculate the break even point if they are sold in the ratio of 3:2 in favor of A. or 3 units of A for every 2 units of b.

Reference no: EM131817129

Questions Cloud

Randomly selected fan has attended multiple games : What is the probability that a randomly selected fan has attended multiple games?

Effective annual percentage rate of return : You've just opened a margin account with $10,000 at your local brokerage firm. What is your effective annual percentage rate of return?

The bank each year to cover all the costs : How much does she need to put in the bank each year (1 year from now until her son is 21 years old) to cover all the costs?

What is the investment future value : A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 8% per year. What is the investment’s future value?

Calculate the break even point : Calculate the break even point if they are sold in the ratio of 3:2 in favor of A. or 3 units of A for every 2 units of b.

What is the present value of these cash flows : What is the present value of these cash flows if you require a 6% rate of return (discount the cash flows at that rate)?

How much you afford to spend each month on personal loans : Report how much you afford to spend each month on personal loans. Report which lenders you may consider using in the future and why.

Present-value comparison? and loan amortization : ?Present-value comparison?-You are offered ?$1,800 today, $9,000 in 9 years, or $34,000 in 28 years. Loan amortization?-How large must the annual payments? be?

Degree of financial leverage under each of the three plans : What is the degree of financial leverage under each of the three plans? what impact would this have on earnings per share for the two expansion alternatives?

User Account

All Pages