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NEW QUESTION: 1
Hensley Corporation uses breakeven analysis to study the effects of expansion projects it considers.
Currently, the firm's plastic bag business segment has fixed costs of $120,000, while its unit price per carton is $1.20 and its variable unit cost is $0.60. The firm is considering a new bag machine and an automatic carton folder as modifications to its existing production lines. With the expansion, fixed costs would rise to $240,000, but variable cost would drop to $0.41 per unit. One key benefit is that Hensley can lower its wholesale price to its distributors to $1.05 per carton (i.e., its selling price), and this would likely more than double its market share, as it will become the lowest cost producer. What is the change in the breakeven volume with the proposed project?
A. 0 units
B. 75,000 units
C. 100,000 units
D. 175,000 units
E. 200,000 units
Calculate the old and new breakeven volumes using the old data and new projections: Old Q(BE)
$120,000/($1.20 - $0.60) = $120,000/$0.60 = 200,000 units.
New Q(BE) = $240,000/($1.05 - $0.41) = $240,000/$0.64 = 375,000 units.
Change in breakeven volume = 375,000 - 200,000 = 175,000 units.
NEW QUESTION: 2
How does information about problems and known errors contribute to 'incident management'?
A. It enables quick and efficient diagnosis of incidents
B. It removes the need for collaboration during incident resolution
C. It removes the need for regular customer updates
D. It enables the reassessment of known erros
NEW QUESTION: 3
You are responsible for the companynetwork and provide technical support for your company. You are in charge of offering service for a customer named Alex. There are two key performance indicators in Alex's company. That is,purchasing assets without a review of the current license availability and purchasing assets on a per-project basis. Now you get an order from the CIO, according to his requirements, the minimum SAM maturity level represented by both of these indicators should be identified. So of the following maturity levels,which one should be identified?
A. Standardized maturity level should be identified.
B. Dynamic maturity level should be identified.
C. Rationalized maturity level should be identified.
D. Basic maturity level should be identified.
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