The Gas Division of Power-U-Up Plans to Introduce a New

question 19

Essay

The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.
Fixed costs per period are $4 236; variable cost per unit is $168;
selling price per unit is $211; and capacity per period is 450 units.
a)Draw a detailed break-even chart
b)Compute the break-even point
(i)in units;
(ii)as a percent of capacity;
(iii)in dollars.
c)Determine the break-even point as a percent of capacity
(i)if fixed costs are reduced to $3 788;
(ii)if fixed costs are increases to $5 577 and variable costs are reduced to 75% of the selling price;
(iii)if the selling price is reduced to $191.

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Definitions:

Political Skill

The ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance one’s personal or organizational objectives.

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Informal and often sensational talk about other people that may not be confirmed as true.

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The level of correctness or precision in information, measurements, or outcomes.