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

## Related Questions

- Finance - Sarker manufacturing company produces and sells 40,000 units of a ...
- ACCOUNTING - Gardner Manufacturing Company produces a product that sells for $...
- ACCOUNTING - Gardner Manufacturing Company produces a product that sells for $...
- Managerial Accounting - Gardner Manufacturing Company produces a product that ...
- college finite math - A product may be made using Machine I or Machine II. The ...
- cost accounting - The East Company manufactures several different products. Unit...
- managerial acct - Need help with this problem. Please show me how to work this ...
- accounting - Shastri Bicycle of Bombay, India, produces an inexpensive, yet ...
- accounting - Pattillo Industries makes a product that sells for $25 a unit. The ...
- accounting - "Harris Company manufactures and sells a single product. A ...

More Related Questions