Draw two break-even graphs-one for a conservative firm

Reference no: EM13281843

Draw two break-even graphs-one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in sales volume on both firms' profits.

Based on the following assumtions draw two break-even graphs.

	Labor	Capital
	Intensive	Intensive
Selling price	$12.00	$12.00
Variable cost per unit	$8.00	$5.00
Fixed costs	$200,000	$300,000

Reference no: EM13281843

Questions Cloud

What is the total value of icarus : Thereafter, operating cash flows and investment expenditures are forecast to grow by 2% a year.

Plot the magnitude of eas a function of r showing features : Use Gauss's law to obtainexpressions for the electric field intensity E in both regions: r> a and r

Which is the better machine for the firm : Either machine must be replaced at the end of its life with an equivalent machine. Which is the better machine for the firm? The discount rate is 10% and the tax rate is zero.

What is the stock worth today : A stock growing at 30% for 8 years it levels off at 7%. The rate of return is 15%. What is the stock worth today.

Draw two break-even graphs-one for a conservative firm : Draw two break-even graphs-one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in ..

Calculate the capacitance per unit lengthbetween the two : Consider two parallel cylindrical conductors with radius aseparated by distance 2d. Calculate the capacitance per unit lengthbetween the two. You may assume that the distance d is much greaterthan the wire radius a.

What is the pretax required return on gordon stock : If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon's stock?

How many extra electrons are on the drop of water : A small drop of water measuring 0.6 mm in diameter, how many extra electrons are on the drop of water

How much must she save each year at the end of years : How much must she save each year at the end of years 21 through 35 to obtain her goal? Assume that the average rate of return over the entire period will be 10%. Please show all work.

User Account

All Pages