What is the break-even volume for each plan

Assignment Help Operation Management

Reference no: EM131270364

A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $35,000 and the variable cost will be $25 per unit after the update. For plan B, the fixed costs will be $45,000 and the variable cost will be $23 per unit after the update.

Please answer the following questions:

(a) Suppose the selling price is $35, what is the break-even volume for each plan? Which plan has a lower break-even volume?

(b) Suppose the selling price is $35. Also, the company aims to achieve a profit of $5,000 after the update. What selling amount will be required to achieve the profit for each plan? Which plan has a lower volume?

Reference no: EM131270364

Questions Cloud

Give an example of a circuit with a cyclic path : Alyssa P. Hacker says that any Boolean function can be written in minimal sum-of-products form as the sum of all of the prime implicants of the function. Ben Bitdiddle says that there are some functions whose minimal equation does not involve all ..

Generate a new project called phonebook : Generate a new project called PhoneBook. Add information simply means that the user is asked for name, number, address, etc. and a new entry is entered into the map.

How many of each type of set should be manufactured : A manufacturing company produces two models of an HDTV per week,- how many of each type of set should be manufactured per week to minimize cost? What is the minimum cost?

Documented condition to be coded : Past treatments incuded oral gold, penicillamine, and two short bouts of oral predisone. What is the documented condition to be coded?

What is the break-even volume for each plan : A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $35,000 and the variable cost will be $25 per unit after the update. Suppose the selling price is $35, what is the b..

Set the reserve requirement : Suppose that Second Republic Bank currently has $150,000 in checkable deposits and $97,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Using these values, fill in the empty cells for reserves, required reserve..

Determine the weekly multi-factor productivity : Lovely-Tech Company produces printers. In January, the company produced 3360 printers per week. The company has 25 direct labor employees. Each employee works 40 hours a week with an hourly wage of $20.00. Determine the weekly multi-factor productivi..

Design decoder to have the shortest possible critical path : Design your decoder to have the shortest possible critical path, and indicate what that path is. What are its propagation delay and contamination delay?

Describe advantages of using each cable type for a business : Compare and contrast cat. 6 unshielded twisted pair, coaxial, and single mode fiber optic cabling types. Describe one or two of the advantages and/or disadvantages associated with using each cable type for a business's network infrastructure.

User Account

All Pages