What will be the projected effect on earnings

Reference no: EM13303095

Rocky Mount Metals Company manufactures an assortment of wood-burning stoves. The average selling price for the various units is $500. The associated variable cost is $350 per unit. Fixed costs for the firm average $180,000 annually.

a. What is the break-even point in units for the company?
b. What is the dollar sales volume the firm must achieve to reach the break-even point?
c. What is the degree of operating leverage for a production and sales level of 5,000 units for the firm? (Calculate to three decimal places.)
d. What will be the projected effect on earnings before interest and taxes if the firm's sales level should increase by 20 percent from the volume noted in part c?

Reference no: EM13303095

Questions Cloud

How many photons does this station emit each second : An FM radio station transmits at a frequency of 80 MHz and a total power of 65 kW. How many photons does this station emit each second

Develop business requirements : Define business processes a) What a Baker does? Discuss the business activities/processes of the organization to show your understanding about the business and develop business requirements

How many shares would have to be issued : Your firm needs to raise $10 million. Assuming that flotation costs are expected to be $15 per share, and that the market price of the stock is $120, how many shares would have to be issued? What is the dollar size of the issue?

Determine the final temperature and pressure of the gas : One mole of an ideal diatomic gas is expanded at constant temperature from a pressure of two atmospheres, What are the final temperature and pressure of the gas

What will be the projected effect on earnings : What will be the projected effect on earnings before interest and taxes if the firm's sales level should increase by 20 percent from the volume noted in part c?

Online access code for emergency medical responder : What is the online access code for Emergency Medical Responder I just order this book from Chegg to rent and I will be getting it thursday. Is there anyway I could get the access code tonight. Please I have to take a pretest before class.

Identify a specific skilled nursing facility : Health care continues to create new services to provide care to patients that are cost effective and efficient. With the aging population, more emphasis is being place on skilled nursing facilities (nursing homes), assisted living facilities (ALFs), ..

Distinquish between homicide and criminal homicide : Distinquish between Homicide and Criminal Homicide? Define the Felony-Murder Rule? List the essential elements of Murder.

How much will the clocks differ in time : Suppose two highly precise, identical clocks are synchronized and one clock is placed on the North Pole, how much will the clocks differ in time

User Account

All Pages