Find out the break-even point for each alternative

Assignment Help Business Management

Reference no: EM13217270

Joe's Machine Shop has identified the grinding station as its key bottleneck and has identified two options for expansion. The Grinder 1000 has fixed costs of $20,000 and $10 per unit. The Grinder 2000 has fixed costs of $40,000 and $8 per unit variable costs. Revenue per unit is projected to be $16.

a. Determine the break-even point for each alternative.

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

c. If demand is 13,000 units, which option yields a higher profit? How much?

Reference no: EM13217270

Questions Cloud

Explain how leaders influence organizational performance : Include in your response how leaders influence organizational performance and provide an example that is congruent with your position

Explain the strategic training and development process : The strategic training and development process have metrics which show the value of training such as improved quality, employee satisfaction

Explain absolute advantage and comparative advantage : Define absolute advantage and comparative advantage and explain how they affect trade between nations. Give an example of an absolute advantage

Explain opportunity for doing marketing research : The Internet provides a wonderful opportunity for doing marketing research and learning about various consumer markets. You are to prepare a report on the size, location, purchasing power, and market potential for the 3 largest minority target mar..

Find out the break-even point for each alternative : Determine the break-even point for each alternative. At what volume of output would the two alternatives yield the same profit?

Correlation between legalization of recreational marijuana : What is the correlation between the legalization of recreational marijuana in Colorado and crime rates?" what is the sampling frame and what is the sample

How does someone become non ethnocentric : How does someone become non ethnocentric and "do as the Romans do" in order to get the contract? How much will previous experience help or hinder the progress of the sale? Why does the visible part of the iceberg overshadow the hidden parts of the..

Who investigates reported rights violations : List and discuss at least three of those rights. Typically, who investigates reported rights violations pertaining to institutionalized offenders, and what gives this group their authority?

Aspects of juvenile institutionalization : Analyze and discuss at least three of the most troubling aspects of juvenile institutionalization.

User Account

All Pages