User Account

All Pages

What is the annual operating breakeven point

Assignment Help Finance Basics
Reference no: EM132627277

Stallings paints company has fixed operating costs of Rs.3 million a year. Variable operating costs are Rs.1.75 per half pint of paint produced and the average selling price is Rs.2 per half pint.

a. What is the annual operating breakeven point in half pints (QBE)? In rupees of sales (SBE)?

b. If variable cost decline to Rs.1.68 per half pint, what would happen to the operating breakeven point (QBE)?

c. Compute the degree of operating leverage (DOL) at the current sales level of 16 million half pints.

d. If sales are expected to increase by 15 % from the current sales level, what would be the resulting percentage change in operating profit (EBIT) from current position?

Reference no: EM132627277

Questions Cloud

How much cost would the firm anticipate at an activity level : The cost per unit manufactured totaled $16. On the basis of this information, how much cost would the firm anticipate at an activity level of 210,000 units?
Protect statistics systems from malware attacks : Anti-malware software, which includes anti-virus software, is typically used to protect statistics systems from malware attacks.
Explain the factors influencing the dividend policy : A) Explain the factors influencing the dividend policy? B) Present the argument in favor or irrelevance of dividends
Estimate the salary cost function for delta : Estimate the salary cost function for Delta. Despite the fact you can choose between some feasible drivers, please use Revenue Passenger Miles
What is the annual operating breakeven point : Variable operating costs are Rs.1.75 per half pint of paint produced and the average selling price is Rs.2 per half pint.
Find the main responsibility on ethical behavior rests on : Find the main responsibility on ethical behavior rests on? The individuals involved. / Professional Bodies. / The government. /Employers
Prompts from Beyond Hate film : Summarize the film. What is it's purpose, it's main argument? How are anger and hate similar? How are they different?
What effect will the have on the firm sales volume : Disposable income is expected to increase by $5,000 and AJ is expected to increase its price by $12. What effect will this have on the firm's sales volume?
Academic journal focused on either micro aggression : Find at least three current articles including one article from an academic journal focused on either micro aggression,

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd