# FINANCE

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.

1. 👍 0
2. 👎 0
3. 👁 124

## Similar Questions

1. ### accounting

Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable \$100,000 Variable \$300,000 Fixed 230,000 Fixed 200,000

asked by Anonymous on November 20, 2018
2. ### finance

Consider a 2 yr project with initial fixed asset investment=\$495,000, straight line depreciation to zero over the 2 yr life, zero salvage value, selling price =\$39, variable costs=\$20. fixed costs=\$210,000, quantity sold=150,000

asked by Tuty on August 17, 2008
3. ### Math Question

A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are \$18,000, whereas the monthly fixed costs of using machine II are \$15,000. The variable costs of

asked by Kal Jay on October 17, 2016
4. ### Healthcare Finance

you are considering starting a walk in clinic. Your financial projections are as follows: revenues \$400,000, wages and benefits 220000, rent \$5,000., depreciation \$30,000., utilities \$2,500., medical supplies \$50,000. and

asked by Kelly on March 25, 2014
5. ### finance

onsider a four-year project with the following information: initial fixed asset investment = \$570,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = \$30; variable costs = \$22; fixed costs

asked by jooji on October 20, 2015
6. ### ACCOUNTING

Gardner Manufacturing Company produces a product that sells for \$120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are \$60 per unit. Fixed manufacturing costs are \$20 per

asked by DIANE on January 26, 2013
7. ### ACCOUNTING

Gardner Manufacturing Company produces a product that sells for \$120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are \$60 per unit. Fixed manufacturing costs are \$20 per

asked by DIANE on January 28, 2013
8. ### Managerial Accounting

Gardner Manufacturing Company produces a product that sells for \$120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are \$60 per unit. Fixed manufacturing costs are \$20 per

asked by Jhoan on April 16, 2014
9. ### managerial acct

Need help with this problem. Please show me how to work this one: The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available Unit manufacturing costs of the

asked by Ryan on March 31, 2013
10. ### Accounting

Mushroom Company, a retail company, has two departments, "G" and "S". The company's most recent monthly contribution format income statement is presented below.

asked by kiki on June 1, 2015

More Similar Questions