non-linear Break Even Analysis, Finance Basics

Assignment Help:

International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units. After 100,000 units, the market becomes saturated and the price per unit falls from $4.00 to $3.80. Also, there are cost overruns at a production volume of over 100,000 units, and variable cost per unit goes up from $2.00 to $2.20. Fixed costs remain the same at $50,000.
a. Compute operating income at 100,000 units. b. Compute operating income at 200,000 units.

Related Discussions:- non-linear Break Even Analysis

The importance of tax, Discuss business taxes and their importance in finan...

Discuss business taxes and their importance in financial decisions

Solution to the agency conflict, Solution to the Agency Conflict The g...

Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover

Floatation of new shares, Floatation of New Shares Rules for floatati...

Floatation of New Shares Rules for floatation of new shares The company must contain an issued share capital of at least Kshs.20 M. The company must contain c

Basic Business Math, A new pet shop wants to apportion their investment mon...

A new pet shop wants to apportion their investment money $132,000 for advertising, building upgrades, and education in the ratio of 5:4:3. How much money does each category get app

Comparison between modern and traditional methods, Comparison between Moder...

Comparison between Modern and Traditional Methods Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose

Determine tax cash flows & irr, An industrial engineer proposed the purchas...

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms. The engineer though that the system would provide a

Explain the term - giving margin money to broker, Explain the Giving Margi...

Explain the Giving Margin Money to Broker Marin is the amount of money which is provided by customer to the brokers who have agreed to trade their securities. It may

Calculate interest rate, Imagine Joy is the manager of a bank named Money ...

Imagine Joy is the manager of a bank named Money Talks Bank of Virginia . This bank has recently issued new loans to customers. Joy wants you, the business analyst to prepare a re

Mrp systems and functions of mrp systems, MRP systems and Functions of MRP ...

MRP systems and Functions of MRP systems Where dependent demand exists, for example between finished product and its constituent parts, item forecasting or inventory control t

Valuation of securities, Valuation of Securities The previous methods ...

Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages