Answer:
Break-even quantity= 9520 units
Explanation:
Giving the following information:
The projections include a sales price of $39.
Variable costs per unit of $14.
Fixed costs of $238,000.
The operating cash flow is $24,300.
Break-even quantity= Fixed costs/contribution margin
Break-even quantity= 238000/(39-14)= 9520 units
Answer:
value of the product to be protected
Explanation:
The value of the products that are being shipped or distributed should not be included in the protective package.
The severity of the distribution environment refers to whether the products are hazardous or not, e.g. pesticides should be dealt very carefully because they are poisonous.
The fragility of the product to be protected refers to the materials used to build the product, e.g. products made of glass are extremely fragile.
The performance characteristics of various cushion materials. refers to what type of cushioning was used to protect the product during shipment.
Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.