Determine each alternative break-even point in units

Assignment Help Accounting Basics
Reference no: EM132092323

Question - A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $17.

a. Determine each alternative's break-even point in units.

b. At what volume of output would the two alternatives yield the same profit?

c. If expected annual demand is 14,000 units, which alternative would yield the higher profit?

Reference no: EM132092323

Questions Cloud

Prepare the journal entry to record the impairment : Assume Wamser will continue to use this asset in the future. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2006
About your audience before delivering presentation : What are some of the details you should know about your audience before delivering a presentation?
Ethical issues in construction industry of india : MGMT20134 - Business Ethics & Sustainability - assessment task is designed to assist students to examine a range of ethical issues and to apply ethical theories
Explain eight dimensions of quality : Understand and explain eight dimensions of quality? Who introduced the concept of value-chain analysis
Determine each alternative break-even point in units : A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Determine each alternative's break-even point in units
Using movie or personal experience application : Whether you are using a movie or a personal experience application, share the specifics by describing the situation,
Augmenting conjoint results with additional data : It can be risky to make important marketing decisions based on a single research method or approach.
Internet exploitation and primary federal law : Two online traps that have the most adverse impact on children are obscenity and cyberbullying. Regarding this topic I need assistance
What benefits does franchising offer professional athletes : What benefits does franchising offer professional athletes such as those describe here?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much will williams pay in interest each year

Williams is planning to issue $620,000 of 5%, How much will Williams pay in interest each year? How much will Williams' interest expense be for the first year

  Refer to the financial statements of urban outfitters given

refer to the financial statements of urban outfitters given in appendix c at the end of this book. at the bottom of

  Ignore the impact of income taxes in your calculationhow

westerville auto company produces a small part that it uses in the production of its automobiles. the companys unit

  Compute the expected cash collections for the month of april

A new company expects that for the first four months sales will be as follows. Required - Compute the expected cash collections for the month of April

  Present journal entries for the tempe bonds

Prepare journal entries for all dates. Present journal entries for the Tempe bonds (a, b, d, f), then journal entries for the Flagstaff bonds (c, e, f)

  Prepare the general journal entries

Use this information to prepare the General Journal entries (without explanation) for the July 15 sales & the July 21 collections

  Compute the ending inventories under the dollar value

Internal Indexes-Dollar-Value LIFO Presented below is information related to Kaisson Corporation for the last 3 years.

  Basis of the new barn

A barn, destroyed by fire, had a basis of $40,000. The owner received $50,000 in insurance proceeds. The barn was replaced by another barn costing $45,000. The basis of the new barn is:

  Differences between ifrs and u s gaap in the way leases

Describe the primary differences between IFRS and U.S. GAAP in the way leases are classified as either operating or finance (capital) leases.

  Define and explain the term price ceiling

Define and explain the term price ceiling. Discuss the pros and cons of rent control. Relate the concept of rent control to the concept of price ceiling.

  Explain the actual revenues and expenditures

Prepare journal entries to record the actual revenues and expenditures. Assume all transactions resulted in increases or decreases in cash.

  Estimated operating budget for the helicopter fleet be

If Reisen Travel expects each helicopter to make, on average, 1,200 round-trips in the coming year, what should its estimated operating budget.

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