Calculate the break-even point in hours for the firm

Assignment Help Managerial Accounting
Reference no: EM132875466

Question - CVP Analysis - The National, Inc. provides support center services of two types: 1 and 2.

 

1

2

Total

Total Revenues

$20,000

$45,000

$65,000

Total Variable Costs

$10,000

$15,000

$25,000

Total Fixed Costs

$6,000

$12,000

$18,000

Activities are measured in hours.

The sales price per hour for 1 is $100 per hour, while the sales price per hour for 2 is $150.

The variable cost per hour for both 1 and 2 is $50.

The National has one location. Further, the computers and other communication equipment are shared by both service types. Fixed costs are allocated to the two types based on an estimate first implemented five years earlier, and managers question the reliability of fixed cost estimates.

Required - Use the provided information to calculate the break-even point in hours for the firm as a whole.

Reference no: EM132875466

Questions Cloud

Journalize the adjusting entry to record the accrued fees : At the end of the current year, $11,600 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees
Journalize the adjusting entry required at the end of year : Journalize the adjusting entry required at the end of the year assuming the amount of unexpired insurance related to future periods is $8,000
Employment test type and methods of interviews justification : What is the belwo points for each job name: Employment Test Type and Methods of Interviews Justification
Organizational issue that could impact success of training : Consider the role of a needs analysis when designing a training program, related to sexual harassment in the workplace at Google.
Calculate the break-even point in hours for the firm : The sales price per hour for 1 is $100 per hour, while the sales price per hour for 2 is $150. Calculate the break-even point in hours for the firm
Gilbert behavior engineering model : Gilbert's Behavior Engineering Model (BEM)Explanation of the six components in the BEM grid.
Understand the challenge of employee demotivation work : Explain the unique added perspective of each of the role's perspectives (i.e, needs, equity, goals, and expectations, context, and rewards) to understand the ch
What is the degree of operating leverage : The total fixed expenses are $13,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage
Determine the best type of training technique : 1) Determine the best type of training technique to use to deliver this type of training and why?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How much baltimore company should report for investment

Determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

  Prepared a spreadsheet that shows the related cvp analysis

Prepared a spreadsheet that shows the related CVP Analysis computations. need to use these information included in the Excel Simulation

  What the activity-based cost for each tape drive unit is

What The activity-based cost for each tape drive unit is?Panamint Systems Corporation is estimating activity costs associated with producing disk drives

  What relevant costs include in a make-or-buy decision

What relevant costs include In a make-or-buy decision? Drawings of goods should be included in the cash receipt in the cash budget

  What amount of net income or loss would FlamFiim record

The company's fixed expenses per month are $214,720 per month. What amount of net income/(loss) would Flamfiim record for the month

  At what amount will Fuzzy Monkey report its investment

The fair value of the bonds at December 31, 2021, was $120 million. At what amount will Fuzzy Monkey report its investment in December 31, 2021 balance sheet

  How an activity-based costing can impact e banking

How an Activity-Based Costing (ABC) can impact e banking? considering how this knowledge will impact decisions made by management

  Which is full cost absorption costing information

Which is Full cost absorption costing information? provides managers with the most accurate information for making decisions

  Evaluate the financial strength of each of the three company

Evaluate the financial strength of each of the three companies BHP Ltd, Santos Ltd and Funtastic Ltd based on evidence presented in the Statement of Cash Flow

  What is the similarity of sharp ratio with treynor ratio

What is the difference and similarity of Sharp ratio with Treynor ratio in portfolio performance measurement? determine which fund is better performed and why?

  Search the web using the term variable costing

Search the Web using the term variable costing.

  Calculate debt equity ratio and capital employed ratio

Calculate Debt Equity Ratio, Proprietory Ratio, and Debt to Capital Employed Ratio and also comment on each ratio. Non-current Liabilities Long-term borrowings

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd