Break Even Analysis Practice Quiz

Break Even Analysis Practice Quiz - Wk 3 Self-study quiz -...

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Wk 3 Self-study quiz - Break-Even Analysis Started: January 28, 2010 1:21 PM Submitted: January 28, 2010 1:49 PM Time spent: 00:27:38 Total score: 80/100 = 80% 1. What market share percentage is needed to not only break even but pay for capital expense and desired ROI? Fixed Costs (period costs) $5,000,000 Unit Sellng Price $27.00 Unit Variable Costs Labor $7.00 Material $12.00 Total Market Demand next year 8,000,000
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units Forecasted Sales next year 1,500,000 units Capital investment $5,000,000 Desired ROI % 11% 550,000 General Feedback: Treat capital expense and the ROI (12% of cap expense) as another "fixed cost." Cap expense plus ROI plus fixed cost / contribution = total number of units that need to be sold. Market share % = total units sold / market demand. Score: 0/20 2. How much gross profit (contribution) is generated at forecasted sales? Fixed Costs (period costs) $5,000,000 Unit Sellng Price
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$27.00 Unit Variable Costs Labor $7.00 Material $12.00 Total Market Demand next year 8,000,000 units Forecasted Sales next year 1,500,000 units Capital investment $5,000,000 Desired ROI % 11%
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This note was uploaded on 10/01/2010 for the course BUSN 499 taught by Professor Tower during the Spring '08 term at Ferris State.

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Break Even Analysis Practice Quiz - Wk 3 Self-study quiz -...

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