(Answered) Ontario outdoors is a manufacturer of outdoor items the

Management Studies

Ontario Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $150 each. Cost to manufacture these sleeping bags includes $40 in materials and $35 in direct labor for each sleeping bag. Variable marketing and selling costs would be $15 each. In order to manufacture these sleeping bags, the company would need to incur $120,000 in fixed costs for new equipment. Show your calculations

Required:

a. Compute the break-even point of the sleeping bag in units sold.

b. What would be the total revenue at the break even point?

c. How many units would Ontario need to sell to earn a profit of $21,000?

d. If fixed costs in fact are $150,000 rather than $120,000, how many units would need to be sold in order to earn $21,000?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92585868
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

Employees at many successful companies start the day by

Employees at many successful companies start the day by checking the economic forecast. Patagonia's Ventura, California, employees start the day by checking the surf forecast. The outdoor clothing company encourages its ...

Using the edgeworth box diagram explain what does the

Using the Edgeworth Box Diagram, explain, what does the concept of production possibility represent in terms of two factors of production - capital and labour

A physical breach has more potential for occur than an

A physical breach has more potential for occur than an electronic breach because people are careless with securing data and equipment. Do you agree?

Vera has a utility function vfc fca what is her mrs of food

Vera has a utility function V(F,C)= FC. a. What is her MRS of food for clothing? (the marginal utility from food, MU(F)=C, and the marginal utility from clothing, MU(C)=F) b. If her income is 100 and the food price is 1 ...

Should managers in the public service pursue the greatest

Should managers in the public service pursue the "greatest good for the greatest number" or follow a set of moral rules when they make decisions involving difficult ethical issues? Explain.

How does a fundraiser use donor motivations to increase

How does a fundraiser use donor motivations to increase fundraising effectiveness? What is your opinion on why so much of the money given to charity comes from people who are not wealthy-what is their motivation?

What are the capabilities and resources need to execute

What are the capabilities and resources need to execute strategy at Amazon? Does Amazon have, or can they build, the capabilities required? (Use Case: Amazon.com: The Brink of Bankruptcy Case)

Research on the web ideas for small businesses for students

Research on the web ideas for small businesses for students. Describe at least three different ideas and include what for of business ownership you would use to structure each business.

Design a moore machine where the output y goes high 1 when

Design a Moore machine where the output Y goes high (=1) when the last four bits of the input X were 1110: 4th to last bit seen = 1 3rd to last bit seen = 1 2nd to last bit seen = 1 Last bit seen = 0 Your machine must be ...

What does it mean to be engaged with your work employee

What does it mean to be engaged with your work, employee engagement or lack of engagement.

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