Breakeven Analysis at MRI (Scenario)Mike has just been hired as a ...

[Alainaaa8]

Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI), makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.


Mike calculated the current breakeven point for the Blueberry to be ________ units per month.
◦ 12,000
◦ 15,000
◦ 10,000
◦ 20,000
◦ 8,000

[morganmarie791]

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[asmith134]

Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI), makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.


If the company sold only 7,500 Blueberry phones last month, what was the loss?
◦ $300,000
◦ $500,000
◦ $400,000
◦ $200,000
◦ $100,000

[millet]

$200,000

[rosent76]

Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI), makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.


If MRI decided to match the selling price of the M-Phone, how many Blueberry phones would they have to sell in a month in order to break even?
◦ 16,000
◦ 12,000
◦ 30,000
◦ 20,000
◦ 24,000

[Jbrasil]

20,000

[EY67]

Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI), makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.


MRI decided to reduce their selling price and match the M-Phone at $160. The next month they sold 32,500 Blueberry phones and earned a profit of ________.
◦ $100,000
◦ $300,000
◦ $200,000
◦ $400,000
◦ $500,000

[cuttiesgirl16]

$500,000

[yoroshambo]

Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI), makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.


The following month, Mandarin reduced the selling price of the M-Phone to $140. If MRI decides to match this new selling price, how many Blueberry phones will it need to sell in order to break even?
◦ 60,000
◦ 40,000
◦ 32,000
◦ 24,000
◦ 48,000

[rosiehomeworddo]

40,000