Concept explainers
a.
To calculate: The break even quantity using both graphic and algebraic approaches.
Concept Introduction: Break-even point is explained as a point where a company is earning no profits and incurring no losses reflecting that total cost is equivalent to total income.
b.
To calculate: The reduction in variable cost if sales were not expected to increase.
Concept Introduction: Break-even point is explained as a point where a company is earning no profits and incurring no losses reflecting that total cost is equivalent to total income.
c.
To calculate: The increase in sales if it is not enough for break even.
Concept Introduction: Break-even point is explained as a point where a company is earning no profits and incurring no losses reflecting that total cost is equivalent to total income.
d.
To calculate: The profits if sales can be increased by 30% or variable cost an be reduced by 85%..
Concept Introduction: Profit is explained as surplus of total income over total costs.
e.
To calculate: The percent change in the per unit profit contribution generated in part (d).
Concept Introduction: Profit is explained as surplus of total income over total costs.
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Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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