Saturday
April 19, 2014

Homework Help: FINANCE

Posted by Debbie on Thursday, November 2, 2006 at 12:26am.

Need help on this Study Problem.

Chevy's Manufacturing has fixed costs (e.g. depreciation) of $40,000 which can be directly attributable to producing a particular product. the product sells for $2 a unit and variable costs are $1.20. What is the break-even point in units? Suppose the firm sold 100,000 units last year and expects volume to increase by 10 percent. What percentage increase in profits would Chevy's see with this increase in volume?

Ok, price less variable costs is 80 cents per unit. How many units are needed to cover the $40,000?

b) calculate the net profit at 100,000 and 110,000.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - Sarker manufacturing company produces and sells 40,000 units of a ...
managerial accounting - 32) Sarker manufacturing company produces and sells 40,...
college finite math - A product may be made using Machine I or Machine II. The ...
ACC - someone help me with this questions please 1. How would the following ...
accounting - "Harris Company manufactures and sells a single product. A ...
ACCOUNTING - Gardner Manufacturing Company produces a product that sells for $...
ACCOUNTING - Gardner Manufacturing Company produces a product that sells for $...
accounting - Mendez Company currently produces and sells 20,000 units of product...
Accounting - Montana Company produces basketballs. It incurred the following ...
accouting - Nancy Company has budgeted sales of $300,000 with the following ...

Search
Members