What is the new break-even point

Assignment Help Accounting Basics
Reference no: EM133104845

Question - Eaton Tool Company has fixed costs of $210,600, sells its units for $58, and has variable costs of $32 per unit.

Required -

a. Compute the break-even point.

b. Ms. Eaton comes up with a new plan to cut fixed costs to $160,000. However, more labor will now be required, which will increase variable costs per unit to $35. The sales price will remain at $58. What is the new break-even point?

c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?

Reference no: EM133104845

Questions Cloud

What the forecasted retained earnings for next year : EXLO Company has current sales of $100,000 and projected annual sales growth of 5%, What the forecasted retained earnings for next year
Horizon consulting- structure and culture : How successful was the post-meeting? Explain. What factors contributed to the success or failure of this meeting?.
Prepare general journal entries to record the transactions : The following information is available about Office Solution's accounting transactions in March 2019. Prepare general journal entries to record the transactions
BUS4001 Business Dissertation Assignment : BUS4001 Business Dissertation Assignment Help and Solution, University of Northampton - Assessment Writing Service
What is the new break-even point : Eaton Tool Company has fixed costs of $210,600, sells its units for $58, and has variable costs of $32 per unit. What is the new break-even point
Team failure and two types of ambiguity : Reflect or think about an instance in which you have witnessed or experienced role conflict or team failure and the two types of ambiguity.
What is sheridan creations direct materials price variance : Sheridan Creations purchased 7250 feet of copper tubing at a price of $2.80 per foot. What is Sheridan Creations direct materials price variance
Pestel analysis for electric automotive manufacturing : I need the PESTEL analysis for the ELECTRIC AUTOMOTIVE MANUFACTURING.
Company values and culture permanently : How would you make innovation a part of the company's values and culture permanently?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the tax consequences to sheldon corporation

What are the tax consequences to Sheldon and Hawk Corporation as a result of the stock redemption

  An end of the month 13108 inventory showed that 120 units

1-a remittance advice attached to a company check provides. a- details about the running cash balance in the checking

  What should the managers take into consideration

Answer the following questions regarding the given scenario: What should the managers take into consideration when attempting to identify a suitable audit firm

  What amount of net income will be reported

Based on the information provided, what amount of net income will be reported in the consolidated financial statements for the year?

  Prepare Shareholders Equity section of Balance sheet

Pop Stop Company began operations on January 1, 2019 by issuing 54,000 common shares at $13 per share. Prepare Shareholders Equity section of Balance sheet

  What was the balance in the investment in nicole account

Only 10% of the 2011 purchases had not been sold to outsiders by the end of 2011. What was the balance in the Investment in Nicole Corp. account

  Calculating break-even and graphing san juan health

calculating break-even and graphing. san juan health departments dental clinic projects the following costs and rates

  What is the book value of the building

What is the book value of the building at the end of 2021 assuming Bravestone Inc. is using double- declining balance method of depreciation

  How should these two projects be classified

The company is using an approach to evaluating strategic options according to value and effort. How should these two projects be classified

  Prepare the journal entries to record depreciation

1. Prepare the journal entries to correct the errors (ignore income taxes). 2. Prepare the journal entries to record 2009 depreciation for any assets record in requirement.

  Compute the amount of sedato company inventory

Sedato Company follows the practice of pricing its inventory. From the information above, compute the amount of Sedato Company inventory.

  Journal entry to record the employer payroll liability

Prepare the general journal entry to record the employer's payroll liability. Prepare the general journal entry to record the employer's payroll tax liability.

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