What is the breakeven point in dollar sales volume

Assignment Help Project Management

Reference no: EM131304025

1. Explain why optimal profits should occur when marginal cost equals marginal revenue.

2. Chambers Company has just gathered estimates for conducting a breakeven analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48,000. The new product will be charged $18,000 a year for its share of general overhead. Advertising expenditures will be $80,000, and $55,000 will be spent on distribution. If the product sells for $12, what is the breakeven point in units? What is the breakeven point in dollar sales volume?

Reference no: EM131304025

Questions Cloud

Why are pricing decisions important to an organization : Why are pricing decisions important to an organization?- Compare and contrast price and nonprice competition. Describe the conditions under which each form works best.

Preferred stock rate of return : Preferred Stock Rate of Return What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 10% of par, and a current market price of (a) $58, (b) $89, (c) $101, and (d) $148 (assume the market is in equilibrium..

Should the federal reserve pursue a goal of deflation : Would deflation create some of the same problems as inflation in terms of the information communicated by price changes and the arbitrary redistribution of income? Briefly explain.

Analysing the tangible and intangible costs : Analyse the costs of different sources of finance by analysing the tangible and intangible costs of different sources of finance-Tax effect & tangible costs of finance-like interest,dividends;opportunity costs. Explain the importance of financial pla..

What is the breakeven point in dollar sales volume : If the product sells for $12, what is the breakeven point in units? What is the breakeven point in dollar sales volume?

What years saw the most volatility in the monetary base : Go to the St. Louis Federal Reserve Web site, at www.stlouisfed.org, and go to "Research & Data" and then "Economic Data-FRED®."

What major points will you consider before joining company : Prepare a covering letter for any one option of job openings provided below in 1 page. If accepted, what major points will you consider before joining the company; financial Aspects or working environment?

Estimated future cash flows of the company : In the stock valuation model, Intrinsic value is based on which of the following factors? I the applied discount rate. II. the amount of risk inherent in a particular stock. III. historical net profits of the company. IV. estimated future cash flows ..

How legal and regulatory forces influence pricing decisions : In what ways do other marketing-mix variables affect pricing decisions?- How do legal and regulatory forces influence pricing decisions?

User Account

All Pages