Break-even point and operating leverage

1.(Break-even point) (NVW) is a boutique winery that produces a high-quality, from organically grown cabernet sauvignon grapes. It sells each bottle for $30. NVWs chief financial officer, Jackie Cheng, has estimated variable costs to be 70 percent of sales. If NVWs fixed costs are $360,000, how many bottles of its wine must NVW sell to break even?
2. () Some financial data for each of three firms are as follows:
BLACKSBURG FURNITURE LEXINGTON CABINETS WILLIAMSBURG COLONIALSAverage selling price per unit $ 15.00 $ 400.00 $ 40.00
Average variable cost per unit $ 12.35 $ 220.00 $ 14.50
Units sold 75,000 4,000 13,000
Fixed costs $35,000 $100,000 $70,000
What is the profit for each company at the ?What is the break-even point in units for each company?What is the degree of operating leverage for each company at the indicated sales volume?If sales were to decline, which firm would suffer the largest relative decline in profitability?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your paper today and save 30% with the discount code HAPPY

Open chat
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code HAPPY