Cvp analysis - bepunderstanding the effects of operating

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Reference no: EM13356702

CVP Analysis - BEP

Understanding the effects of operating leverage High Tech, Inc., and Old Time Co compete within the same industry and had the following operating results in 2008:

	High Tech	Old Time Co.
Sales........................................	$2,100,000	$2,100,000
Variable expenses.....................	420,000	1,260,000
Contribution Margin.........	$1,680,000	$840,000
Fixed expenses..................	1,470,000	630,000
Operating income..................	$210,000	$210,000

Required:

Calculate the break-even point for each firm in terms of revenue

	High Tech	Old Time Co.
Sales........................................		100%	100%
Variable expenses.....................
Contribution Margin.........
Fixed expenses..................
Operating income..................

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Reference no: EM13356702

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