Your company is evaluating using automated production or maintaining manual production of products. Based on the information
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Question:
Your company is evaluating using automated production or maintaining manual production of products. Based on the information in the table below, what is the EBITDA BREAK EVEN POINT for Automated Production?
Automated Production | Manual Production | |
Unit VC: | ||
Labor | $ 1.00 | $ 4.00 |
Rope | $ 4.00 | $ 4.00 |
Spacer bars | $ 1.50 | $ 1.50 |
Hardware | $ 2.00 | $ 2.00 |
Packaging | $ 2.00 | $ 2.00 |
Shipping & other | $ 5.00 | $ 5.00 |
Total | $ 15.50 | $ 18.50 |
Fixed Cost (FC) | $ 30,000.00 | $ 5,000.00 |
D&A | $ 10,000.00 | $ 1,000.00 |
Units Sold | 10,000 | 10,000 |
Unit price | $ 25.00 | $ 25.00 |
Unit VC | $ 15.50 | $ 18.50 |
Revenue | $ 250,000.00 | $ 250,000.00 |
less VC | $ (155,000.00) | $ (185,000.00) |
less FC | $ (30,000.00) | $ (5,000.00) |
EBITDA | $ 65,000.00 | $ 60,000.00 |
EBIT | $ 55,000.00 | $ 59,000.00 |
Posted Date: