Question: Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant, but fixed costs increase by 10%. Hambry
Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant, but fixed costs increase by 10%.
Hambry Enterprises produces a component for recycling uranium used as a nuclear fuel in power plant generators in France and the United States. Use the following cost and revenue figures, quoted in U.S. dollars per hundredweight (cwt), recorded for this year to calculate the answers for eachplant.
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Revenue, Si per cwt per cwt 8,500 12,500 Fixed Cost, Cost, Location France United States 3.50 2.65 3,900 9,900
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Breakeven point is calculated as Fixed Cost divided by Contribution Margin It shows how many units of a product must be sold to cover the fixed costs ... View full answer
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