Purchase Solution

Breakeven points for Machines A and B

Not what you're looking for?

Ask Custom Question

"Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $19.50 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the breakeven points for Machines A and B? (Hint: Find BEB - BEA)

Machine A Machine B
Price per pair (P) $19.50 $19.50
Fixed costs (F) $25,000 $100,000
Variable cost/unit (V) $7.00 $4.00

a. 3,784
b. 4,318
c. 3,739
d. 4,674
e. 4,452

Purchase this Solution
Solution Summary

The solution explains how to calculate the difference between the breakeven points for Machines A and B

Purchase this Solution
Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

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.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

View More Free Quizzes
Related BrainMass Solutions

  • Evaluating Proposals with the help of CVP Analysis

    That is why impact on breakeven points in units and dollars is case of proposal B is much higher. Solution explains the steps for evaluating three proposals by CVP analysis.

  • Exponents, graphs, and equations

    One of these product line (E-9), termed earthmoving equipment, is essentially for construction applications. The other line (F-9) is for forestry use. The two lines are produced in the same departments (A and B) with the same machines.

  • Quantitative Methods

    Equation of a line passing through 2 points: y= mx + b where m= slope and b= intercept.

  • Cost Benefit Analysis

    35834 Cost Benefit Analysis (2) A company can manufacture a product with two different machines. Machine "A" has a $4.00 manufacturing cost per unit and a fixed cost of $3,000 for tools.

  • Determining Breakeven Points

    The CDs will be sold for $13.98 each, variable operating costs are $10.48 per CD, and annual fixed operating costs are $73,500. a. Find the operating breakeven point in number of CDs. b.

  • Preparation of a CVP Income Statement for Utech Company

    192447 Preparation of a CVP Income Statement for Utech Company Please prepare a CVP statement and computer break points Please see the attached file In a CVP Income Statement we separate the fixed and variable costs UTECH COMPANY CVP

  • CVP questions

    (P) Since machines are dedicated for a particular type of product, this is a product cost j. Warehousing cost (Each type of product has its own warehouse.) (P) Since each type of machine has its own warehouse it is a product cost k.

  • Using Breakeven Analysis in Decision Making

    For example, I am going to start a new office cleaning service.

  • Break-even point

    (Points: 15) a. 30,000 b. 38,000 c. 27,500 d. 10,500 The breakeven point in units is Fixed Costs/Contribution Margin per unit Contribution Margin per Unit = Selling Price - Variable Cost = 10-5 = $5 Fixed Cost = 150,000 Breakeven units

View More Related Solutions