Question: Cost of Goods: Variable Marketing Expense: Variable Operations Technology: Fixed New Product Research: Fixed Quality Programs: Variable Sales/Service Reps: Fixed HR Programs: Variable Depreciation: Fixed
Cost of Goods: Variable Marketing Expense: Variable Operations Technology: Fixed New Product Research: Fixed Quality Programs: Variable Sales/Service Reps: Fixed HR Programs: Variable Depreciation: Fixed Overhead: Fixed
1. Based on your choices, what is the breakeven point if the unit price is $500? Use the following formula: breakeven units = fixed costs / (unit price unit variable cost) Breakeven units = 580 / (500 - 375) = 4.64 units
2. Now double Marketing Expense and Sales/Service Reps, start Quality Programs at a cost of $50, and set HR Programs to 2% of sales. What is the new breakeven? Breakeven units =
3. If the current capacity is 3,610 units, will you be able to reach breakeven in each case?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
