What are the assumptions underlying sales mix

Assignment Help Finance Basics

Reference no: EM132027242

Question: The overall concept of a contribution margin is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit. Instead, let's talk about sales mix. This relates to the mix of products. How do changes in the mix of products impact breakeven? How could a shift in sales mix result in both a higher breakeven point and a lower net income? Use specific examples from a company you know something about. (for instance, for Bank of America) What are the assumptions underlying sales mix and cost volume profit that are potentially misleading?

Reference no: EM132027242

Questions Cloud

Structure of risk-free rates holds : If the liquidity premium theory of the term structure of risk-free rates holds, what is the liquidity premium for year 2, L2?

Find annual growth rate of regular payments expected to be : Oxygen Optimization just bought a new filtration system for 203, 900 dollars. To pay for the filtration system, the company took out a loan that requires.

What is the market-to-book ratio : Given common stock of $35 for year-end, total assets of $50m, debt ratio of 65%, no preferred stock, and 3 million shares of common stock outstanding

Calculate net present value : Use a re-investment rate of 10%. Calculate Net Present Value (=NPV) for each investment and specify which investment is the most profitable.

What are the assumptions underlying sales mix : The overall concept of a contribution margin is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit.

Write a paper about the counseling profession : DISCUSS how this information helps to define dynamics as it relates to the counseling profession

What is the operating cash flow at given units : At an output level of 74,000 units, you calculate that the degree of operating leverage is 1.70. Suppose fixed costs are $150,000.

How many new shares will be distributed : How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Determine which test the student did better on : Assuming the performance on both tests follows a normal distribution, determine which test the student did better on.

User Account

All Pages