Finance, anyone? (3 Viewers)

OP
Azzurri7

Azzurri7

Pinturicchio
Moderator
Dec 16, 2003
72,692
  • Thread Starter
  • Thread Starter #4
    Oh well I can give you a hand...
    Thanks..

    A company has increased it's fixed cost from 100.000 Euro to 120.000 Euro and kept the percentage of variable cost in sales at 60%. What will be the change (increase/decrease) if company's sales at breakeven point as a result of these actions of company's management? If you had to recommend one way to decrease the company's sales at breakeven point what will be your choice? Motivate you answer!
     

    IrishZebra

    Western Imperialist
    Jun 18, 2006
    23,327
    #6
    Thanks..

    A company has increased it's fixed cost from 100.000 Euro to 120.000 Euro and kept the percentage of variable cost in sales at 60%. What will be the change (increase/decrease) if company's sales at breakeven point as a result of these actions of company's management? If you had to recommend one way to decrease the company's sales at breakeven point what will be your choice? Motivate you answer!
    How can you analyse a break even point without sales or Cost Per Unit?
     

    Dostoevsky

    Tzu
    Administrator
    May 27, 2007
    88,988
    #7
    Thanks..

    A company has increased it's fixed cost from 100.000 Euro to 120.000 Euro and kept the percentage of variable cost in sales at 60%. What will be the change (increase/decrease) if company's sales at breakeven point as a result of these actions of company's management? If you had to recommend one way to decrease the company's sales at breakeven point what will be your choice? Motivate you answer!
    Break-even point=fixed cost /sales price - variabile costs per unit

    Increase of 20% of sales.
     

    Buck Fuddy

    Lara Chedraoui fanboy
    May 22, 2009
    10,880
    #11
    Break-even point=fixed cost /sales price - variabile costs per unit

    Increase of 20% of sales.
    That's what I got as well. But I probably over simplified things :D

    100.000 = 40% => 60% variable = 150.000 => Total : 250.000
    120.000 = 40% => 60% variable = 180.000 => Total : 300.000

    => increase 20%
     

    Dostoevsky

    Tzu
    Administrator
    May 27, 2007
    88,988
    #12
    Thanks..

    A company has increased it's fixed cost from 100.000 Euro to 120.000 Euro and kept the percentage of variable cost in sales at 60%. What will be the change (increase/decrease) if company's sales at breakeven point as a result of these actions of company's management? If you had to recommend one way to decrease the company's sales at breakeven point what will be your choice? Motivate you answer!
    Lower variable costs I guess. Or making more products at the same variable rate as you have at the moment.
     

    Buck Fuddy

    Lara Chedraoui fanboy
    May 22, 2009
    10,880
    #15
    Lower variable costs I guess. Or making more products at the same variable rate as you have at the moment.
    Making more products usually increases your variable cost (the actual cost, not the rate or percentage).

    How about increasing your product price (if your variable costs can not be decreased that is)?


    Man, it sure has been a while since school...
     

    Dostoevsky

    Tzu
    Administrator
    May 27, 2007
    88,988
    #18
    Making more products usually increases your variable cost (the actual cost, not the rate or percentage).

    How about increasing your product price (if your variable costs can not be decreased that is)?

    Man, it sure has been a while since school...
    And IF that happens and breakeven point does not move that would mean the increase of fixed cost.
     

    V

    Senior Member
    Jun 8, 2005
    20,110
    #19
    • V

      V

    WTF??

    What did they do to you at the Uni?
    Right? I couldn't believe it myself, like he's another person.

    Dule, go back, do a thousand crunches, post a pic of your abs so I can restore my image of you.
     

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