Solution-Calculate the break even units required for given

Calculate the break even units required for given scenarios

Assignment Help Accounting Basics

Reference no: EM131752157

Question: ABC Company sells its product for $16.00 per item. The Fixed Costs of the company are $240,000 per year, and the Variable Cost per Item is $8.00. The management has been offered an opportunity to move into a smaller facility, which would lower the Fixed Costs to $200,000. However, the Variable Cost per item would actually increase to $9.00 at this new facility. Management had come to you for advice. Please calculate the Break Even units required for both of the above scenarios. Give these 2 numbers to Management. Then, give your recommendations to the management team as to whether they should move to the new facility or not.

Reference no: EM131752157

Questions Cloud

Explain the double-declining method : ABC Company purchased an equipment on January 1, 2013, for $210,000. The equipment was expected to have a useful life of 5 years and a residual value.

What are the powers of consumer product safety commission : What are the powers of the Consumer Product Safety Commission (CPSC)? Name some consumer products excluded from the purview of the CPSC.

Explain why you chose the value or behavior : The social imagination is defined as the vivid awareness of the relationship between experience and the wider society;

What entries are necessary and how would you record them : In 2014, you sell the stock for $11,500 What entries are necessary and how would you record them

Calculate the break even units required for given scenarios : ABC Company sells its product for $16.00 per item. The Fixed Costs of the company are $240,000 per year, and the Variable Cost per Item is $8.00.

Create a drawing showing necessary views and isometric view : Create a drawing showing the necessary views and the isometric view, assuming that front, top, and right side surfaces are shown.

Will bill be successful in his lawsuit against sally : Will Bill be successful in his lawsuit against Sally? To collect the $9000 what must Bill prove? How could all of this have been avoided?

Create a help-wanted ad for an entry level marketing person : Create a 1-page, help-wanted ad for an entry level marketing person. And A brief summary of the entry-level marketing position.

Prepare an incremental analysis schedule : Prepare an incremental analysis schedule to demonstrate what amount operating income would increase or decrease as a result of accepting the special order.

User Account

All Pages

Calculate the break even units required for given scenarios

Reference no: EM131752157

Reference no: EM131752157

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT