Break-Even Analysis in Selling Two Products
Not what you're looking for?
A firm sells two products, one call cogs and the other called sprocket. The firm has a fixed cost of $100,000.00 per year. Each cog costs $8 to produce but can be sold in the market for $18. Each sprocket costs $22 to product, and has a market price of $40. 5 cogs are sold for every 7 sprockets. The production facility of the firm can produce any number of sprockets and cogs required.
What is the break-even production of the firm in terms of sprockets and cogs sold?
Using BE=fixed costs/price-Variable cost per unit I assume with two products you add both prices to make the price and then subtract the summation of the costs. Then how is the 5 out of 7 figured out?
Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.