What is the fixed cost per pound at the break-even point

Assignment Help Chemical Engineering

Reference no: EM131317494

A process plant making 2000 tons per year of a product selling for $0.80 per lb has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What is the fixed cost per pound at the break-even point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 34 percent of gross earnings?

Reference no: EM131317494

Questions Cloud

Term structure of interest rates-expectations theory : Given the yield on a 7 year zero-coupon bond is 7%, yield on a 2 year strip is 5%, and forward two-year rate of 8% in year 5 (aka R5-7), what must be the forward three-year rate in year 2 (akaR2-5)?

What has happened to the total volume of share repurchases : What do record date, ex-dividend date, and payment date mean, related to dividends? Why would you expect the price of a stock to drop by the amount of the dividend on the ex-dividend date?

Discuss decision making strategies and challenges faced : Utilize the Internet to locate a major incident involving multi-agency emergency management event. Possible events include: Discuss decision making strategies and challenges faced by leaders in working through the event.

What is the profit margin : Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover is 1.2. What is the profit margin?

What is the fixed cost per pound at the break-even point : If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 34 percent of gross earnings?

How should roles be selected for emergency operations center : Read transcript and provide thoughts on material. How should roles be selected for the Emergency Operations Center (EOC)? Is seniority is less important than experience? Give examples?

What has happened to the average cash dividend payout ratio : What has happened to the average cash dividend payout ratio of U.S. corporations over time? What explains this trend?

Research and development might bring about new ideas : One recommendation for McDonalds' continued success in the future is to look at how research and development might bring about new ideas that will make the company more innovative in the fast food industry.

Relationship between dividend payout levels and growth rate : What is the expected relationship between dividend payout levels and the growth rate and availability of positive-NPV projects, under the agency cost model of dividends?

User Account

All Pages