Conducting break-even analysis for new product

Assignment Help Operation Management

Reference no: EM131159275

Chambers Company has just gathered estimates for conducting a break-even analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48000. The new product will be charged $18000 a year for its share of general overhead. Advertising expenditures will be $80000, and $55000 will be spent on distribution. If the product sells for $12, what is the break-even point in units? What is the break-even point in dollar sales volume?

Reference no: EM131159275

Questions Cloud

How many calendars should the bookstore stock : The demand for next year's calendar at a bookstore is assumed to be normally distributed with a mean of 430 and a standard deviation of 70. The calendar costs the bookstore $7.00 each and will be sold for $11.00 each. How many calendars should the bo..

Both companies to implement postclosing integration : . Why is it often considered critical to integrate the target business quickly? Be specific. Given the complexity of these two businesses, do you believe the acquisition of Gillette by P&G made sense? Why did P&G rely heavily on personnel in both com..

At the recent clinic strategic planning meeting : At the recent clinic strategic planning meeting, the team members (administrators, healthcare providers, clinic staff, and community mem-bers) decided it was time to upgrade the patient management system to include a comprehensive electronic medical ..

Soliciting employee buy-in and implementation : Discuss a change initiative at your organization or a previous organization that you have worked or been affiliated with. Evaluate what the management team did well and the areas for opportunity in communicating the change, soliciting employee buy-in..

Conducting break-even analysis for new product : Chambers Company has just gathered estimates for conducting a break-even analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48000. what is the break-even point in units? What is the break-even point in dollar sa..

How the product offer exceptional utility : Discussion Using the information reported in Units 1 and 2, Identify the three tiers of noncustomers, how the product(s) offer exceptional utility, and how the company’s core competencies can achieve a Blue Ocean Strategy. This is for Starbucks, I pi..

Identify sport business organization : In the sport industry, there are many sources of revenue and costs. Identify a sport business organization of your choice and discuss the major sources of revenue and costs for the business. address the following issues in your initial post: The majo..

Recruitment and staffing : What are the retention benefits associated with properly socialized employees? Identify and explain the phases of socialization.

How do ethical business practices influence the evaluation : Explore ethical decision making and arrive at conclusions relevant to your industry and perspectives of Christian worldview. How do ethical business practices influence the evaluation, selection, and application of an analytical, quantitative busines..

User Account

All Pages