Calculate the breakeven quantities

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If the sales of a company-A is $220 and its Fixed cost is 9.09% of its sales whereas the company B has same dollar sales but its fixed cost is 27.27% of sales. The price of product per unit for both company A and B is $2 and company A and B are expecting to produce 110 units. Variable cost per unit for company A is $1.5 whereas it is $1.0 for Company B

Question (1) Calculate the breakeven Quantities for both companies.

Question (2) What would be Net Operating Profits after Taxes (NOPAT) given there is no debt and applicable tax rate is 40%.

Question (3) What would be Return on equity if both companies have $200 of equity?

Reference no: EM132693843

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