ADMQuizAnswerKey - Question 1: Breakeven Point Analysis a)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1: Breakeven Point Analysis a) How many units need to be produced to at least breakeven? (10 points) Fixed Costs: $9,600 (12) + $140, 000 + $10, 000(12) = $375,200 (3pts) Variable Costs: $3.00 + $5.00 + $4.00 = $12.00 (3 points) Selling Price: $15.00 BEP = FC / UC = 375,200/ 3.00 = 125,066.67 units ( 4points) b) Using the above information, draw a breakeven diagram and properly label all appropriate points. (10 points) **BEP in dollars = 125,066.67 units * 15.00 = $1,876,000 1 point for drawing diagram 125,066.67 Breakeven point (2 points) Fixed Costs (1 point) Units Produced (1 point) Dollars (1 point) Total Costs (1 point) Total Sales (1 point) Profit (1 point) Loss (1 point) $1,876,00 $375,200
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 2: Economic Order Quantity You are given the following data for the ABC Corporation: Cost per unit: $100.00 Annual demand for good: 500,000 units Cost to place an order: $50.00 Annual cost to carry inventory: 15% a) Calculate the Economic Order Quantity. (5 points) EOQ = √ 2(A)(S) / (I)(C)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

ADMQuizAnswerKey - Question 1: Breakeven Point Analysis a)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online