Describe how calculate the breakeven point

Assignment Help Financial Accounting
Reference no: EM132665831

Set up a hypothetical case of a company with three products(a, b and c) that are sold at different prices (KES2000,KES3000 and KES4000 respectively)and have different unit variable costs( and unit contributions-20%,25%and 20% respectively) assuming a fixed cost of KES 2million. Assume sales mix of 2:3:5 respectively.

Problem 1: Describe how you calculate the breakeven point.

Reference no: EM132665831

Questions Cloud

What is Rex gross income from the partnership : The partnership had $600,000 of taxable income and Rex withdrew $200,000. What is Rex's gross income from the partnership in 2019 and 2020
Computer adheres to standard security baseline : Develop a procedure guide to ensure that a computer adheres to a standard security baseline and has no known vulnerabilities.
What you know now about the role of the public health nurse : As you look back on Sessions A & B of Public Health Nursing, reflect on what you knew then and what you know now about the role of the public health nurse.
Evaluate how long- term plan and contingency plans : Evaluate how long- term plan and contingency plans are used in this case and Determine at least 2 functions of management that are shown in this case
Describe how calculate the breakeven point : Describe how you calculate the breakeven point. Set up a hypothetical case of a company with three products(a, b and c) that are sold at different prices
Who is taxed on the gain : Wade paid $7,000 for automobile that needed substantial repairs. The daughter then transferred the car to the buyer and received $13,000. Who is taxed on gain
What should companies do to mitigate the risk : The possibility of a power outage seems to grow every year because of demand and an aging infrastructure. What can/should companies do to mitigate this risk?
Common challenges with which sentiment analysis deals : What are the common challenges with which sentiment analysis deals? What are the most popular application areas for sentiment analysis? Why?
What would be the benefit to the taxpayer : All customers pay within the time limit. What would be the benefit to the taxpayer using the cash method of accounting rather than the accrual method

Reviews

Write a Review

Financial Accounting Questions & Answers

  Statement of retained earnings for the ear ended

At the end of the second year of operations (December 31, 2014), the following financial l data for the Ava darling company are available: Prepare the income statement and statement of retained earnings for the ear ended December 31,2014. Prepare the..

  Analyse the effects on consumers of changes and trends

Analyse the effects on consumers of changes and trends in the financial market place - effects on consumers of changes and trends in the financial market place

  Develop an idea that will be the start of a business plan

Develop an idea that will be the start of a business plan. Build on the idea for a service business - a Home Construction/Building Business.

  Cost allocation and customer profitability

Explain the relationship between cost allocation and customer profitability. Why is determining customer profitability important to a business, and how can appropriate cost allocation help accomplish that goal?

  Prepare the journal entries for broome ltd at june

If the recoverable amount of the buildings at 30 June 2016 was $175 000, how would this change the answer to requirement ?

  Discuss why the account balance and assertion are at risk

Describe one (1) substantive test of detail that you would undertake for each account to address the assertion and risk identified

  The gross margin percentage is equal

The gross margin percentage is equal to:

  Additional operating expenses associated

The following information relates to the Dexter coy. for the upcoming year. Amount Per Unit Sales $ 5,200,000 $ 13.00 Cost of goods sold 3,800,000 9.50 Gross margin 1,400,000 3.50. Fortunately, there will be no additional operating expenses associate..

  Prepare a monthly schedule of expected cash payments

Prepare a monthly schedule of expected cash payments for direct materials for the first quarter of 2011.

  When organizers-directors apply for not-for profit status

When organizers and directors apply for not-for profit status from a state, they are subject to which of the following?

  What will chun income statement for the year ended

Report Chun Book Store’s plant assets on the company’s balance sheet at December 31, 2010. What will Chun’s income statement for the year ended December 31, 2010, report for this situation?

  Deducted for depreciation on the corporation

Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?

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