Example Given all the following costs for a consulting firm: C= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour %3D Maximum output = 160,000 hours/year %3D Determine: a) Breakpoint in service hours and in % of capacity b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dot p is increased by 10%
Example Given all the following costs for a consulting firm: C= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour %3D Maximum output = 160,000 hours/year %3D Determine: a) Breakpoint in service hours and in % of capacity b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dot p is increased by 10%
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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