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Author Question: The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following ... (Read 174 times)

Brittanyd9008

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on: Jun 7, 2019

Question 1

Olfert Greenhouses has compiled the following estimates for operations.

Sales $150 000
Fixed cost $45 200
Variable costs 67 500 112 700
Net income $37 300
Capacity is a sales volume of $175 000.

Perform a break-even analysis showing
a) an algebraic statement of
(i) the revenue function;
(ii) the cost function;
b) a detailed break-even chart.

Question 2

The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.

Fixed costs per period are $4 236; variable cost per unit is $168;
selling price per unit is $211; and capacity per period is 450 units.

a) Draw a detailed break-even chart
b) Compute the break-even point
(i) in units;
(ii) as a percent of capacity;
(iii) in dollars.
c) Determine the break-even point as a percent of capacity
(i) if fixed costs are reduced to $3 788;
(ii) if fixed costs are increases to $5 577 and variable costs are reduced to 75% of the selling price;
(iii) if the selling price is reduced to $191.
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
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Marked as best answer by Brittanyd9008 on Jun 7, 2019

fauacakatahaias

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Reply #1 on: Jun 7, 2019
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Brittanyd9008

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Reply #2 on: Jun 7, 2019
Excellent


fauacakatahaias

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Reply #3 on: Jun 7, 2019
Great! Please up vote :D


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