Ch 15 And14 Fin 307 Individual Assignment

15- 12 A) You are a hard working psychoanalyst in the office of financial operations for a manufacturing sign of the zodiac that only produces a single product. You have developed the quest monetary value structure information for the company. All of it pertains to an output direct of 10 million units. Using this information, find the breakeven point in units of output for the firm. * Return on operating greet= 25% * Operating asset dollar great deal = 5 times * Operating assets = 7.5 million * gradation of operating leverage = 4 times operating asset turnover = gross revenue / Operating assets 5 = Sales / 20 Sales = 100 million Price per unit = 100 / 10 = 10 per unit Return on operating assets= web income / Operating assets .25 = Net Income / 20 = 5 million DOL = parcel / Net income 4 = Contribution/ 5 Contribution = 20 million Fixed cost = Contribution- Net income = 20 -5 =15 million Contribution margin = Contribution/Sales *100 = 20 / 100 * 100 = 20% Breakeven point = Fixed cost / Contribution margin = 15 / .25 = 60 million Breakeven point (in units) = 60million / 10 = 6 million 15-13 A) Allison Radios manufactures a bonk line of radio and communications equipment for law enforcement agencies. The average merchandising price for a complete unit is 180. The variable cost for the same unit is 126. Allison Radios incurs fixed costs of 504,000 per year.

A. What is the breakeven point in 10,000 units in units of money? B. What is the dollar in sales volume the firm must achieve to reach the breakeven point? C. What would be the firms profit or loss at the following units of toil sold a. 12,000 units b. 15,000 units c. a)540,000/(180-126)=10,000 units d. 20,000 units D. Find the degree of operating leverage for the production and sales levels given in part C. A) 540,000/ (180-126) =10,000 units B) $180*10,000=$1,800,000 C) (12,000x54)-540,000=$108,000 (15,000x54)-540,000=$270,000... If you want to pop a full essay, order it on our website: Orderessay

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