What is the break-even volume for each plan

Assignment Help Business Management
Reference no: EM132388248

A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $39,000 and the variable cost will be $28 per unit after the update. For plan B, the fixed costs will be $50,000 and the variable cost will be $27 per unit after the update. Please answer the following questions:

(a) Suppose the selling price is $32, what is the break-even volume for each plan? Which plan has a lower break-even volume?

(b) Suppose the selling price is $32. Also, the company aims to achieve a profit of $6,000 after the update. What selling volume will be required to achieve the profit for each plan? Which plan has a lower volume?

Reference no: EM132388248

Questions Cloud

BSC104C Engineering Mathematics Assignment : BSC104C: Engineering Mathematics Assignment - Statistics and Standard Deviation, Assessment Help and Solution - Engineering Institute of Technology, Australia
Discuss the steps of planning as a management function : One of the major functions of manager is to have an effective plan. Discuss the steps of planning as a management function
Gender discrimination and sexual harassment : Gender Discrimination and Sexual Harassment. In this presentation needs to explain federally prohibited gender discrimination, sexual harassment in workplace,
Creating an ecommerce business : Identify the ownership form for this business, taking into consideration tax implications, liability exposure, managerial ability, and cost of formation.
What is the break-even volume for each plan : (a) Suppose the selling price is $32, what is the break-even volume for each plan? Which plan has a lower break-even volume?
Optimize your strategies to compete in healthcare : You want to explore more innovative tools and be able to enhance and optimize your strategies to compete in healthcare.
Brainstorm and list some rude comments that customers : Brainstorm and list some rude comments that customers can make. While the possibilities can be endless, come up with ten and then rank them
How a small business can successfully engage in global : Analyze and recommend how a small business can successfully engage in global business.
What functions do intermediaries serve : How is the concept of disintermediation related to Porter's Five Forces? Is disintermediation inevitable for all industries (why or why not)?

Reviews

Write a Review

Business Management Questions & Answers

  Cost of an asset over its useful life

What does it mean to allocate the cost of an asset over its useful life?

  Creatively intelligent-innovative and entrepreneurial

describe how you see yourself as creatively intelligent, innovative and entrepreneurial.

  Change requests for the client-management system

How do you recommend Nancy prioritize these change requests for the client/management system?

  Problem regarding the competitive advantage

Are there factors beyond an organization's control that can affect its competitive advantage? What are some of those factors?

  Methods to identify appropriate problems in organization

Review should include: Methods to identify appropriate problems in an organization.

  Business management courses from my institution

How current are the study materials for the Business Management courses from my institution?

  A business environment

The intention of this assignment is to develop your critical analysis skills around assessing a business environment. You will need to identify strengths and weaknesses in the company where you currently work, would like to work, or one in which you ..

  How many subnets and hosts do you have

You have a subnet mask of 255.255.255.248 on a Class C address. How many subnets and hosts do you have?

  Alphabetic character that is neither a digit

If the user enters a letter display "No, that's a letter". If the user enters an alphabetic character that is neither a digit not a letter display invalid input

  Information about business cycles

How are the five economic ideas represented by the broken window fallacy and what goods and services are produced, and in what quantities?

  How does amazon interact with external stakeholders

How does Amazon interact with External Stakeholders (Start-ups, scientists, educational institutions etc.) in order to generate innovation and marketing ideas?

  Investment to be valued at the original

What return would you suffer next year for your investment to be valued at the original $3,000? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

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!

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