Share
Explore BrainMass

Break even, degree of operating leverage, and average cost

Could someone please help me complete the attached spreadsheets? I have attached information concerning the calculations the must be derived. The yellow highlighted parts are the parts I finished, could you check them to make sure they are correct? I need all rows and columns that are blank to be completed. There are two pages of the spreadsheet. Also, would you recommend going with Option 1 or Option 2 for the soundcard division? Would you recommend expanding the software or the keyboard division? and why?

Attachments

Solution Preview

Please find my response in the attached file. I found that the Soundcard Template, there was some error in for Keyboard Division. So, I have corrected it accordingly.

Thanks for using BrainMass.com. Have a great day.

Break-even, operating leverage, average cost analysis,etc.

Software Keyboard
Price AVC FC QBE Price AVC FC QBE
108 103.39 2,927,000 634,924 290 285 470,000 94,000
114 103.39 2,927,000 275,872 305 285 470,000 23,500
120 103.39 2,927,000 176,219 320 285 470,000 13,429 The information not highlighted
126 103.39 2,927,000 129,456 335 285 470,000 9,400 Is information that was given.
132 103.39 2,927,000 102,307 350 285 470,000 7,231
138 103.39 2,927,000 84,571

Software
% Change in Quantity Quantity Price AVC FC AC DOL Profit % Change in ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment in excel file.

$2.19