Option D is the answer | |
Some of the disadvantages of using Breakeven analysis is that it assumes all units produced are sold, can handle only one variable and constrains managers from going out of box |
49. Breakeven Analysis has its draw backs: a. All products that are manufactured are sold. b....
49. Breakeven Analysis has its draw backs: a. All products that are manufactured are so ld. b.Its function is linear because it can only handle one variable. c. It constrains managers from going outside the box. d. All of the above are correct. e. None is correct.
Clinton Manufacturing made and sold 534,000 units of its product for $84 per unit in 20X1. Variable costs per unit are $23 (which are largely labor costs), and total fixed costs are $1,385,000. Clinton's manufacturing process above is labor intensive, but Clinton's CEO is considering a change in the way products are manufactured by going to a machine-based system, increasing fixed costs to a total of $4,154,813 per year, rather than $1,385,000 above. If Clinton did go through with the...
Objective: This activity has the purpose of helping students calculate the Breakeven point using the software Microsoft Excel to perform a sensitivity analysis. (Objective 4) Student Instructions: Read example to be used to compute the Breakeven point. Textbook problem 13 - 1 (Blank, L. & Tarquin, A. ), page 459: The fixed cost at Harley Motors are $1 million annually. The main product has revenues of $8.50 per unit and $4.25 variable cost. Determine the breakeven quantity per year and...
After considerable research, a winter products line has been developed. However, Silven’s president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $11 per box. Because of excess capacity, no additional...
please explain how to get the sales revenue at breakeven and the sales revenue at target profit (the gray boxes)! :) 131 Center $ . % Xv fx ) Conditional Format Forming as a St Launch Shipping and handling ---- 40.3951 94 11 1 523.4117647 se Wet Business & Directions Original Assumptions Advising client - on Ready Multiproduct Breakeven point: -in units Sales revenue at breakeven Product #1 53.78151261 Product #2 40.33613445 Total 94.11764706 + Product #1 Product #2 Multiproduct...
Silven Industries, which manufactures and sells a highly successful line of summer lotions and Insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product...
QUESTION Matchless Corporation manufactures radios that it uses in several of its products. Osman Budi, the company’s financial manager, has been assigned the task of determining whether to continue manufacturing the radios or to buy them from an outside source. The following information is available: • The company needs 20,000 radios per year. The radios can be purchased from an outside supplier at a cost of RM60 per unit. • The cost of manufacturing the radios is RM85 per unit,...
Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product...
Matchless Corporation manufactures radios that it uses in several of its products. Osman Budi, the company’s financial manager, has been assigned the task of determining whether to continue manufacturing the radios or to buy them from an outside source. The following information is available: • The company needs 20,000 radios per year. The radios can be purchased from an outside supplier at a cost of RM60 per unit. • The cost of manufacturing the radios is RM85 per unit, detailed...
Use the following for parts A & B: Assume that a cable television company charges its customers a “late fee” of $5 whenever a customer fails to pay his bill within 45 days of the billing date. Further assume that the law allows such a fee as long as the costs incurred by the cable company is approximately what it costs to service the accounts of those late-paying customers. For example, the cable company must contact the late paying customers...