Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. beano ltd manufactures beanbags. the company’s v

Beano Ltd manufactures beanbags. The company’s variable costs are $15 per unit and fixed operating costs...

80.2K

Verified Solution

Question

Finance

Beano Ltd manufactures beanbags. The company’s variable costsare $15 per unit and fixed operating costs are $2.1 millionannually. The beanbags are sold for $45 each.

Required

a      What is Beano Ltd’s break-evenpoint in units?

  1. What is Beano Ltd’s break-even point in sales dollars? Confirmyour answer using an alternative method.
  1. What is Beano Ltd’s degree of operating leverage (DOL) if salesare 85,000 units for the year?
  2. What is Beano Ltd’s EBIT if sales are 62,500 units for theyear.
  1. What would be the financial implications of a plantmodernisation program to increase operating leverage in order toreduce its per-unit variable costs?

Answer & Explanation Solved by verified expert
4.2 Ratings (773 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Beano Ltd manufactures beanbags. The company’s variable costsare $15 per unit and fixed operating costs are $2.1 millionannually. The beanbags are sold for $45 each.Requireda      What is Beano Ltd’s break-evenpoint in units?What is Beano Ltd’s break-even point in sales dollars? Confirmyour answer using an alternative method.What is Beano Ltd’s degree of operating leverage (DOL) if salesare 85,000 units for the year?What is Beano Ltd’s EBIT if sales are 62,500 units for theyear.What would be the financial implications of a plantmodernisation program to increase operating leverage in order toreduce its per-unit variable costs?

Other questions asked by students

Q

1. As a molecular biologist, you have been asked to design a liposome (artificial cell). The...

Biology
Q

15 AKS 8a Recall that hemophilia is a blood disorder in which an individual cannot...

Biology
Q

6 In the diagram UQ and VP intersects at R and UV QP VR 65...

Geometry
Q

5 B2B Company is considering the purchase of equipment that would allow the company to...

Basic Math
Q

A basketball team has ten players. Each day at practice, one is chosen to bring...

Basic Math
Q

Is it possible for costs such as salaries or depreciation to end up as assets...

Accounting
Q

Required Information Exercise 16-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1...

Accounting
Q

Some recent financial statements for Earl Grey Golf Corp. follow. Find the following financial ratios...

Accounting
Q

Average rate of return The following data are accumulated by Patterson Inc. in evaluating two...

Accounting
Q

Until the end of year 0, Magic Carpets (MC) was a C corporation with a...

Accounting
Q

Required information [The following information applies to the questions displayed below.] Carmen Camry operates a...

Accounting
Q

Please use factors. 09-11. The following cash flow estimates have been...

Finance