Determine the company break-even point in dollars

Assignment Help Managerial Accounting

Reference no: EM133417474

Case Study: Inland Company manufactures and sells three products, Red, White and Blue. Their individual selling prices are: Red, $55 per unit; White, $85 per unit; and Blue, $110 per unit. The variable costs of manufacturing and selling these products are: Red, $40 per unit; White, $60 per unit; and Blue, $80 per unit. Their sales mix is a ratio of 5:4:2 (Red:White:Blue). Annual ?xed costs shared by all three products are $150,000. One item of raw materials is used in manufacturing all three products. Management has learned that a new material is of equal quality and less costly. The new material would reduce the variable costs as follows: Red by $10; White by $20, and Blue by $10. But, the new material requires new equipment, which will increase annual ?xed costs by $20,000. (In preparing your answers always round up to the nearest whole composite unit.)

Required:

a. If the company continues to use the old material, determine the company's break-even point in dollars and units of each product that would be sold at the break-even point.

b. If the company decides to use the new material, determine the company's new break-even point in dollars and units of each product that would be sold at the break-even point.

Reference no: EM133417474

Questions Cloud

What do you think it means to suffer into truth : What is a good essay for this prompt? Reread Orestes speech (lines 274-298). Then, reread the Chorus' speech from Agamemnon (lines 161-216). Using the text

Developing a predictive machine learning model : Developing a predictive machine learning model (classifier) and deploy it as a web API for inference

Relationship between business and society differently : What were some of the concepts that may have prompted you to look at the relationship between business and society differently?

What are the key elements-in terms of setting : What are the key elements-in terms of setting, character, and dialogue-in his revision? Perhaps other changes he made to the story or the characters

Determine the company break-even point in dollars : If the company continues to use the old material, determine the company's break-even point in dollars and units of each product that would be sold at the break

Compute the number of parameters in each layer : Compute the number of parameters in each layer and showcase the total number of parameters of your network. Compute the number of parameters, for both with

Compute the total number of convolutional operations : Compute the total number of convolutional operations for each layer of your both networks (a) and (c). Assume each pooling operations

Why you think his actions were either ethical or unethical : Referencing formal ethical theories (for example, Consequentialism or Deontologism), explain why you think his actions were either ethical or unethical.

What evidence supports stock market efficiency : What markets are efficient? In general, the markets for the stocks and bonds of and for treasury securities are efficient. However, there is evidence

User Account

All Pages