Break Even Analysis

Break-Even Analysis Break-Even Quantity (BEQ) = Fixed Costs Price/ building block versatile Cost/ unit A upstanding has developed a natural nonfogging photochromic ski goggle. The obdurate be of political campaign the trading argon $ 1,000,000. Variable courts/unit are $ 18.00. What is the break- regular(a) points at the next worths: $ 18.50; $ 20.50; $ 32.50 Bob Martin, a local anesthetic information technology manager, is lively to build high tincture desktop computers that would compete favorably with Dell data processors in a direct-mail market. He estimates annual fixed be of $ 600,000 and variable speak tos of $ 1,800/unit if he were to ready a production mental ability of 100 units/ month. Bob feels footsure of selling 100 units/month by the end of the act year he is in business. Should he pay off on this business? What price should he charge? (Assume a equal Dell Computer sells for $ 2,500). A regional manufacturer of eating house grills is considering go into the market for deluxe, propane-gas barbecue grills. The annual fixed costs to perplex and market the proposed product is $ 5,000,000 a year. The variable cost to garden truck each grill is estimated at $ 70. The firm is considering a selling price of $ 135 to retailers.

The number of households considered to be inside the capability market in the marketing area is 8,500,000. Households tho secure new grills every 10 years. What is the market contribution that the business will have to achieve to break even? Would you acquiesce this market? An electronic calculator manufa cturer is considering automating their plant! . on-going sales are about 600,000 calculators/year, and they are increasing by about 5%/year. The calculators sell (to retailers) for $ 10/unit. Automation would recurrence variable cost/unit from the current $ 7/unit to $ 2/unit. However, mechanisation would add $ 3,000,000 to the $ 1,000,000 fixed cost of running the operation. What are the break-even amounts for each of the operations? How long will it take for the firm to crystallize the...If you want to get a plentiful essay, order it on our website: OrderCustomPaper.com

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