Monday
October 20, 2014

Homework Help: Finance

Posted by michael on Thursday, September 15, 2011 at 12:09am.

Allison Radios manufactures a complete line of radio and communication equipment for law enforcement agencies. The average selling price of its finished product is $180 per unit. The variable cost for these same units is $126. Allison Radios incurs fixed costs of $540,000 per year.

a. What is the break-even point in units for the company?

b. What is the dollar sales volume the firm must achieve in order to reach the break-even
point?

c. What would be the firmís profit or loss at the following units of production sold:

12,000 units? 15,000 units? 20,000 units?

d. Find the degree of operating leverage for the production and sales levels given in part c.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Business Finance - Immediate help needed for the following two questions: 15-12A...
accounting - ABC's Product information Current Product Expansion Product (...
Math, mathematics of finance - I am stuck on these two math questions. If nyone ...
Managerial Economic - The ABC Company manufactures AM/FM clock radios and sells ...
CVP Analysis - Business Math - Engineering estimates show that the variable cost...
please help - 1.suppose that the demand forecast indicate that 1800 units of the...
college statistic and algebra - 1.suppose that the demand forecast indicate ...
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 ...

Search
Members