Illustrate what is the break-even point bep of each, Ask an Expert

Management Studies

Q. Audio Cables, Inc. is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1.20 per unit. Fixed costs are $14,000. Current sales volume is 34,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $2,000. Variable costs would increase to $.70 but sales volume should jump to 58,000 units due to a higher-quality product.

(a) Illustrate what is the break-even point (BEP) of each process? (Round your answers to the nearest whole number.)

BEP of existing process units
BEP of new process units

(b) Should Audio Cables buy the new equipment?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M9372284

Have any Question?Write your Review or question?

Related Questions in Business Management

What goals seem to dominate early management principles why

What goals seem to dominate early management principles? Why do you think this is the case?

Auburn creed i believe that this is a practical world and

Auburn Creed: I believe that this is a practical world and that I can count only on what I earn. Therefore, I believe in work, hard work. I believe in education, which gives me the knowledge to work wisely and trains my ...

With an emphasis on some of the security ethical and

With an emphasis on some of the security, ethical, and societal challenges of IT in the business world. Please discuss a real-world example/application of an organization that has dealt with crimes including hacking, cyb ...

How do you go about conducting an external

How do you go about conducting an external strategic-management audit?

Please response to a discussion post below from a

Please response to a discussion post below from a classmate. The three concepts or ideas I have gathered from my time in class are the basic principles of servant leadership, leadership and culture in military operations ...

When applying industry analysis and organizational

When applying industry analysis and organizational structure determine when past industry performance is a good indicator of future profitability and when is it not a good indicator? and why, please explain the logic so ...

Name some marketing techniques and styles that you have

Name some marketing techniques and styles that you have encountered that demonstrate many of the strongpoints we learned in this course.

Please assist me with finding two examples of where an

Please assist me with finding two examples of where an organization and management excelled in ensuring employees were properly compensated, including benefit packages, and then provide two examples of where an organizat ...

Describe the crawl-walk-run cwr metaphor for leader

Describe the Crawl-walk-run (CWR) metaphor for leader development?

Do you think there is some type of diversity we really

Do you think there is some type of diversity we really aren't interested in? Or, perhaps what we really are looking for is an end to discrimination, but at some point in the last 10-15 years that has morphed into the con ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert