Lampport Industries GHT. is dedicated to the manufacture of games for children from 2 years of age, among them
Lampport Industries GHT. is dedicated to the manufacture of games for children from 2 years of age, among them is the traditional trampoline of 5 meters in diameter. This company wishes to determine financial aspects related to the break-even point of this game and currently handles the following costs: for the rental of the facilities ¢2,515,000.00, for basic services ¢1,485,000.00 and for employee salaries ¢4,365,000.00. In relation to the game, the direct costs are: Support legs ¢25,600.00, folding ring ¢17,325.00, metal assemblies ¢15,782.00, screws, washers and nuts ¢11,455.00, hooks and cables ¢12,860.00, plastic protectors ¢11,750.00, canvas upper ¢81,000.00, upper tubes ¢25,500.00 and protective mesh ¢22,450.00. Additionally, the company incurs the following expenses: The sale price of each trampoline is estimated at ¢266,575.00.
- a) Calculate the unit variable cost and the monthly fixed cost of the company.
- b) Calculate the Operating Break-Even Point in quantity and money of the company and interpret it.
- c) Calculate, analyze and indicate what happens to the break-even point if the Variable Cost increases by 10%
- d) Calculate, analyze and indicate
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