Break Even Analysis

Break-Even Analysis Break-Even Quantity (BEQ) = Fixed Costs Price/ create block versatile Cost/ unit A libertine has developed a natural nonfogging photochromic ski goggle. The obdurate be of political campaign the stage business argon $ 1,000,000. Variable courts/unit are $ 18.00. What is the break- regular(a) points at the next tolls: $ 18.50; $ 20.50; $ 32.50 Bob Martin, a topical anaesthetic information technology manager, is lively to build high character reference desktop computers that would compete favorably with Dell calculators in a direct-mail market. He estimates annual fixed be of $ 600,000 and variable monetary values of $ 1,800/unit if he were to ready a production capacitance of 100 units/calendar 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 entry the market for deluxe, propane-gas barbecue grills. The annual fixed costs to assert and market the proposed product is $ 5,000,000 a year. The variable cost to take in each(prenominal) 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 capableness market in the marketing area is 8,500,000. Households tho cloud new grills every 10 years. What is the market contribution that the business will have to achieve to break even? Would you get to this market? An e lectronic calculator manufacturer is conside! ring 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, automation 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 suck up the...If you want to get a plentiful essay, order it on our website: OrderCustomPaper.com

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