What was the company net income for the prior year

Assignment Help Other Subject

Reference no: EM133239757

Question - CVP analysis - Description - Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 3,700,000 p per year. The variable cost of each component is 1,400 p, and the components are sold for 3,700 p each. The company sold 5,600 components during the prior year. (p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.)

Required -

1. Compute the break-even point in units.

2. What will the new break-even point be if fixed costs increase by 5 percent?

3. What was the company's net income for the prior year?

4. The sales manager believes that a reduction in the sales price to 3,200 p will result in orders for 500 more components each year. What will the break-even point be if the price is changed?

5. Should the price change discussed in requirement 4 be made?

Reference no: EM133239757

Questions Cloud

How did the scientific revolution change the way : How did the Scientific Revolution and the Enlightenment change the way that many Europeans understood and approached their world

What ideas and things from your own culture could be seen : AMST 152 Wellesley College What ideas and things from your own culture could be seen and classified as weird from people from another culture?

Manufacturing plant in county of ousting : Bower corporation owns a manufacturing plant in the county of ousting.

Describe the significance of the obergefell case : PLA 2800 Keiser University Describe the significance of the Obergefell case decided by the U.S. Supreme Court in 2015. Identify three arguments in favor

What was the company net income for the prior year : Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. What was the company net income for prior year

Explain the significance of his rallying call : AFR 320 CUNY John Jay College of Criminal Justice - Explain the significance of his rallying call, for freedom, justice and equality by any means necessary

Discuss the effects on commercial software : Discuss the effects on commercial software and commercial developers if all software were to become open source

Identify the common requirements for a ceremonial marriage : LEGAL STUD PLA 2800 Keiser University Identify the common requirements for a ceremonial marriage and indicate what the consequence usually is for failure

Maroon company from receivable financing : How much is the total cash received by Maroon Company from receivable financing? (factoring, assignment and discounting)

User Account

All Pages