Breakeven point for Bevil Industries
Not what you're looking for?
Bevil Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 40% and its current breakeven point is $500,000 in sales revenue. If Bevil Industries' fixed expenses increase by $40,000 due to the equipment, what will its new breakeven point be?
Purchase this Solution
Solution Summary
The expert examines a break-even point for Bevil Industries. The fixed expenses are given.
Solution Preview
Breakeven point
Bevil Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
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.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.