Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. determine the annual unit sales volume at which th

Determine the annual unit sales volume at which the firm would be indifferent...

50.1K

Verified Solution

Question

Accounting

image

image

Determine the annual unit sales volume at which the firm would be indifferent between the two manufacturing methods. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Ivanhoe Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Capital Intensive Direct materials $4.30 per unit Direct labor $ 5.16 per unit Variable overhead $2.58 per unit Fixed manufacturing costs $2.169.680 Labor-Intensive $4.80 per unit $7.16 per unit $4.08 per unit $ 1,322,832 Ivanhoe' market research department has recommended an introductory unit sales price of $ 27.52. The incremental selling expenses are estimated to be $ 414.448 annually plus $ 1.72 for each unit sold, regardless of manufacturing method. Calculate the estimated break-even point in annual unit sales of the new product if Ivanhoe Company uses the 1. Capital-intensive manufacturing method. Labor-intensive manufacturing method. 2 Capital-Intensive Labor-Intensive Break-even point in units

Answer & Explanation Solved by verified expert
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Provide an example of and describe an investment asset, a consumption asset and one that might...

Finance
Q

1-Explain six of the following terms with reference to the Mollusca. In your answer be as...

Biology
Q

essay often contains arguments A presentations of the author s emotional feelings about a subject...

Biology
Q

One metallic sphere A is given positive charge whereas another identical metallic sphere B of...

Physics
Q

A charged particle of mass m and charge q enters a magnetic field region with...

Physics
Q

5 Let P be the polygon with vertices 1 0 2 0 4 1 4...

Basic Math
Q

A random sample of 25 Real Estate listings for houses in the Northeast section of...

Basic Math
Q

3 Walsh Company manufactures and sells one product. The following information pertains to each of...

Accounting
Q

The following events occurred for Favata Company. a. Recelved $10,000 cash from owners and issued...

Accounting
Q

The teacher has offered to buy 1,300 copies of the CD at a price of...

Accounting
Q

Question9 Presented below is information related to copyrights owned by Sandhill Company at December 31,2017....

Accounting
Q

Womba Company disposed of all of their Class 8 assets during the year. They had...

Accounting