Description of break-even point

Assignment Help Managerial Accounting
Reference no: EM1348517

Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million. The price for a 240-passenger plane with a range up to 4,010 miles is about $105 million per plane.

Compute the company's break-even point in number of widebody passenger jets and in dollars of sales.

Reference no: EM1348517

Questions Cloud

Managerial accounting-importance of price and volume : Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets?
Determine the angle : An uncharged spherical conducting shell surrounds a point charge - q at its centre. Then a charge +3q is placed on the outside surface of shell.
Leaders traits and follower cooperation : determine whether or not a follower wishes to cooperate. Do you think this is true
Determine resonant frequency in series rlc resonant circuit : Given the series RLC resonant circuit in the figure, operating at variable frequency, determine: The resonant frequency ω o ,  The circuit’s quality factor Q , The cut-off frequencies, f 1  & f 2  and the bandwidth BW
Description of break-even point : Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million.
Criminal behavioral research : A brief description of one ethical principle and one research standard that you think apply to conducting research in criminal behavior. Then, explain how each applies, using specific examples.
Computing financial ratios : Research the the four firms using either Key Statistics or Financials from the overview main pages for the stocks onYahoo! Finance Web site. Compute and compare the following financial ratios for the 4 firms for their most recent fiscal years:
Hr perspective - integrity and personality tests : Do you think employers should use integrity and personality tests to make recruiting and promotion decisions
Traditional cost systems distort costs : Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Cvp analysis and income taxes

Diego Motors is a small car dealership. On average it sells the car for $25,000 which it buys from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries.

  Job order costing in manufacturing company

Record the preceding events in a horizontal statements model. In the cash flows column, designate the cash flow as operating activities (OA), investing activities (IA), or financing actives (FA)

  Job order cost-process cost systems

Describe the similarities and differences between job order cost and process cost systems.

  Pricing decision for ace manufacturing

Ace Manufacturing earns revenues of $2,100,000 annually on 150,000 unit sales of industrial part. The part is priced at $14 each. A potential customer, in industry that the company has not previously served

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Normal costing-actual costing systems

Describe the reasons a consulting firm might use a normal costing system rather than an actual costing system.

  Question on cvp computation

Determine the break even point in units. The company has a capacity of 150,000 units and is currently at two thirds of its capacity. The sales manager believes the company could increase sales by 8,000 units if advertising expenditures are increa..

  Tuition revenue budget and number of faculty

Wikki State University (WSU) is preparing its maser budget for upcoming academic year. Currently, 8,000 students are enrolled on campus however, admissions ofice is forecasting a 5 percent growth in student body despite a tuition hike to $75 per c..

  Cvp analysis of detroit disk

Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Calculate Detroit Disk's break-even point for the current year in number of video di..

  Benefits of social programs

In Excel spreadsheet, show whether this project is economically feasible. Would the majority approve this project (explain)? Does the project meet Pareto efficiency criterion (explain)?

  Net realizable value method-decision to sell at split-off

Pacheco, Inc., manufactures two products, overs and unders, in single process. The joint costs of this process were $50,000, and 14,000 units of overs and 36,000 units of unders were produced.

  Find a newspaper article

Find a newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after November 2013

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