Purchase Solution

# I need help finding the answers to the questions attached, the class is Operating and Financial leverage

Not what you're looking for?

Shock Electronics sells portable heaters for \$25 per unit, and the variable cost to produce them is \$17. Mr. Amps estimates that the fixed costs are \$96,000.
a.) How do I compute the break-even point in units?

b.) How do I fill in the table below (in dollars) to illustrate that the break-even point has been achieved.

sales
fixed costs
total variable costs
net profit (loss)

Therapeutic Systems sells its products for \$8 per unit. It has the following costs:
Rent \$120,000
Factory labor \$1.50 per unit
Executive salaries \$112,000.
Raw material \$.70 per unit

How do I seperate the expenses between fixed and variable costs per unit. And using this information and the sales per unit of \$6, How do I compute the break- even point?

I greatly appreciate your help thank you very much

##### Solution Preview

Shock Electronics sells portable heaters for \$25 per unit, and the variable cost to produce them is \$17. Mr. Amps estimates that the fixed costs are \$96,000.
a.) How do I compute the break-even point in units?
the marginal contribution of each unit is MC = P-VC = 25-17= \$8
Then the break-even point q = ...

##### Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

##### 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.