Maurice Tutor

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About Maurice Tutor

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Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 398 Weeks Ago, 3 Days Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 21 Jan 2018 My Price 6.00

Francis Furniture

5.     Francis Furniture has current fixed costs of $1 million. Francis’s only product, a roll- top desk, sells for $3,000. Variable operating costs per unit are $1,000. Francis plans to buy a new lathe that will produce a more precise roller for the desk. The lathe will add $100,000 in annual fixed costs. Variable operating costs are not expected to change as a result of the lathe purchase. If Francis wishes to leave its  breakeven point unchanged, what action must it take?

6.     Rodney Rogers, a recent business school graduate, plans to open a wholesale dairy products firm. Rogers expects first-year sales to total $5.50 million. He desires to earn a target pretax profit of $1 million during his first year of operation. Variable costs are 40 percent of sales.

a.  How large can Rogers’ fixed costs be if he is to meet his profit target?

b.  What is Rogers’ breakeven level of sales at the level of fixed costs determined in part a?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Jan 2018 06:01 PM My Price 6.00

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