Management 14th Edition by Leslie Rue,Lloyd Byars ,Nabil Ibrahim

تمرين 22

Staying on Budget
As manager of the Ace Division of the Triple-A Company, you agreed to the following budget at the beginning of the current fiscal year: This budget was based on forecast sales of 30,000 units during the year.
You are six months into the fiscal year and have collected the following sales data:
By shopping around, you have held your subcontracting costs to an average of $3.60 per unit.
The fixed and other variable costs are conforming to budgets.
1. What was the break-even point based on the original forecast in sales for the Ace Division?
2. What is the revised break-even point?
3. What trends in the above information, if any, concern you?
4. Based on the preceding information, prepare a brief report for your boss, summarizing the current status of the Ace Division.