Question about Break-Even Analysis

xzbgyrl2
timer Asked: Feb 12th, 2015

Question Description

(Break-even analysis)The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is

$612,000

and it is expected to have a six-year life with annual depreciation expense of

$102,000

and no salvage value. Annual sales from the new facility are expected to be

2,050

units with a price of

$1,060

per unit. Variable production costs are

$630

per unit, and fixed cash expenses are

$82,000

per year.

a.Find the accounting and the cash break-even units of production.

b.Will the plant make a profit based on its current expected level of operations?

c.Will the plant contribute cash flow to the firm at the expected level of operations?


User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors