What is the new breakeven point

Assignment Help Financial Management

Reference no: EM132055947

AAA Corporation’s production of widget has a fixed cost of $124,000 and a variable cost of $1.24 per unit. If the widgets sell for $6.50 what is the breakeven point in units sold? _______

If AAA Corporation finds a more efficient way of production and the variable cost drops to $0.94 what is the new breakeven point? _________

If the market becomes saturated and AAA Corporation drops the price from $6.50 to $4.00 but the variable cost stay at $0.94 what is the new breakeven point? ________

Please show calculations

Reference no: EM132055947

Questions Cloud

Asset systematic risk firm-specific risk : Asset Systematic Risk Firm-specific risk

Valuations and investment recommendations : The existing literature on sell-side analysts demonstrates that not only analysts err in their forecasts, valuations and investment recommendations,

Evaluating two competing investment projects : Steers is evaluating two competing investment projects. Both projects require an invest of R30 million.

Compute the fundamental value of ecoshop stock : Compute the fundamental value of EcoShop’s stock using the FCFF valuation model.

What is the new breakeven point : If AAA Corporation finds a more efficient way of production and the variable cost drops to $0.94 what is the new breakeven point?

Company decides to work on the project : What is the total amount that Columbus Electrical will have to pay in taxes in year 2 if the company decides to work on the project?

Calculate the required rate of return for options : The Simpson Corporation is thinking about investing in two new options, Calculate the required rate of return for options A and B.

Write an hourly income function for the company : Write an hourly income function for the company, in terms of the number of jobs, by type, that were underway during that hour.

Compare the sequencing rules : Compare the following sequencing rules: FCFS, SPT, EDD, CR. (Show your supporting calculations below).

User Account

All Pages