11 Dec Multiple breakeven points Last month, Capetini Cap
Multiple breakeven points Last month, Capetini Capacitor Company sold capacitors to its distributors for $250 per capacitor. The sales level of 3,000 capacitors per month was less than the single-shift capacity of 4,400 capacitors at its plant located in San Diego. Variable production costs were $100 per capacitor, and fixed production costs were $200,000 per month. In addition, variable selling and distribution costs are $20 per capacitor, and fixed selling and distribution costs are $62,500 per month. At the suggestion of the marketing department, this month Capetini reduced the sales price to $200 and increased the monthly advertising budget by $17,500. Sales are expected to increase to 6,800 capacitors per month. If the demand exceeds the single-shift capacity of 4,400 capacitors, the plant needs to be operated in two shifts. Two-shift operation will increase monthly fixed production costs to $310,000.Required(a) Determine the contribution margin per capacitor last month.(b) Determine the sales level in number of capacitors at which the profit-to-sales ratio would be 10% for last month.(c) Determine the two breakeven points for this month.(d) Determine the sales level in number of capacitors at which the profit-to-sales ratio this month is the same as the actual profit-to-sales ratio last month. Is there more than one possible sales level at which this equality would occur?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.