Purchase Solution

Breakeven analysis:Common facility used for 2 products

Not what you're looking for?

Ask Custom Question

Please assist and show work so I can determine my error.

A firm sells two products, one call slingers and the other called widgets. The firm has a fixed cost of $50,000.00 per year. Each slinger costs $4 to produce but can be sold in the market for $9. Each widget costs $11 to product, and has a market price of $20. 5 Slingers are sold for every 7 Widgets. The production facility of the firm can produce any number of widgets and slingers required.

What is the breakeven production of the firm in terms of Widgets and Slingers sold?

Purchase this Solution
Solution Summary

This posting contains a problem on break even analysis of two products using common facility.

Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

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.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

View More Free Quizzes
Related BrainMass Solutions

  • Piedmont Fasteners Corporation: Break even point

     "The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out." "I'm sure you can handle it, Cheryl.

  • Financial leverage and break-even point

    Therapeutic Systems sells its products for $8 per unit.

  • CVP questions

    How much will profits increase for every unit sold over the break-even point? At the breakeven point, all fixed costs have been accounted for. Beyond the breakeven, after accounting for variable costs, all increase will go to profits.

  • Break even point with sales mix

    Each slinger costs $4 to produce but can be sold in the market for $9 What is the breakeven production of the firm in terms of Widgets and Slingers sold?

  • Cost Concepts Healthcare Organization: Break even point

    For example, if the hospital has $1,000,000 in facility costs (utilities, depreciation, equipment costs) and they have 20,000 patient nights, the facility costs per patient day are $50 per night.

  • Breakeven point in dollar sales and composite units

    One type of raw material has been used to manufacture all three products. The company has developed a new material of equal quality for less cost.

  • Accounting/Finance questions

    Suppose Morton adopts Plan 2 and the Boston facility initially operates at an annual EBIT level of $6 million. What is the time interest earned ration? 6. Moon and Chittenden are considering a new Internet venture to sell used textbooks.

  • Break-even and Cash flows

    A psychiatric facility to operate in the medical center. The facility will provide services to patients on an outpatient basis. The facility will operate Saturday and Sunday to 8:00 am to 6 pm.

  • Opportunity Costs

    =In this we will add Opportunity cost to the accounting cost =5Q+50000+Foregone salary (70000*2) =5Q+$190000 C. What is the economic breakeven number of units for this operation?

View More Related Solutions