Bodger Ltd: calculate break-even point, profit levels, net profit and the minimum level of production at which it is better to manufacture rather than buy in stock.
Not what you're looking for?
Bodger Ltd. has been in the business of buying and selling washing machines for some years, but has decided to look at the possiblity of manufacturing its own brand...
(a) Calculate, to the nearest whole number, the break-even point in units and in value for options 2 and 3.
(b)Calculate which of the three options is most profitable at the following levels.
(i) 190 000 units.
(ii) 240 000 units.
(iii) 290 000 units.
(c) Calculate the level in units at which options 2 and 4 show the same net profit.
(d) Calculate the minimum level of production at which it is better to manufacture rather than buy in stock.
(e)Briefly assess each option.
Option 1:
Option 2:
Option 3:
Purchase this Solution
Solution Summary
The expert calculates the break-even point in units and in value for options. The three options which are most profitable at the levels are determined.
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.