Alex Miller,Inc

question 189

Essay

Alex Miller,Inc.,sells car batteries to service stations for an average of $30 each.The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000.Other monthly fixed costs of the company total $8,000.
Required:
a.What is the breakeven point in batteries?
b.What is the margin of safety,assuming sales total $60,000?
c.What is the breakeven level in batteries,assuming variable costs increase by 20%?
d.What is the breakeven level in batteries,assuming the selling price goes up by 10%,fixed manufacturing costs decline by 10%,and other fixed costs decline by $100?

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Definitions:

Marquee Brands

Highly recognizable and respected brands that are well-established and command a significant amount of consumer loyalty and trust.

Internationally

Relating to activities, operations, or influence that span across multiple countries around the world.

Social Commerce Technologies

Digital tools and platforms that enable the buying and selling of products and services directly within social media networks.

Digital Worlds

Virtual environments and online platforms where users can interact, create, and engage with digital content and communities.