Question: An engineering company is producing a new security door hinge for the rear doors of Ford Transit vans. The cost of producing left and right
An engineering company is producing a new security door hinge for the rear doors of Ford Transit vans. The cost of producing left and right handed hinges is identical; each door will require 3 hinges for each door. The finance director needs to know where the breakeven point is achieved so he can plan for any future costing. You have been asked to produce a breakeven chart/graph to analyse production between 0 and 2500 units. You have the following information from data available. Fixed cost (including all tooling) pound 47,000.00 Variable cost per unit pound 19.50 Factory gate price pound 43.00 The director then asks you to investigate the new breakeven point if the factory gate price was decreased to pound 39
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