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  • Great Lakes Automotive: Known Parameters / Inputs

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    avalens
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    Great Lakes Automotive produces a gear assembly with a fixed cost of $23,000 to set up production. Each unit costs $3.82 in variable costs for labor and materials and sells for $6. The break even point where total revenue equals total costs is 10,550 units. At this volume, Great Lakes would spend the same $63,302.75 on fixed and variable costs and make $0 profit.

    Original Description:

    Break even point

    Original Title

    P25

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    Great Lakes Automotive produces a gear assembly with a fixed cost of $23,000 to set up production. Each unit costs $3.82 in variable costs for labor and materials and sells for $6. The break even point where total revenue equals total costs is 10,550 units. At this volume, Great Lakes would spend the same $63,302.75 on fixed and variable costs and make $0 profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Great Lakes Automotive: Known Parameters / Inputs

    Uploaded by

    avalens
    Great Lakes Automotive produces a gear assembly with a fixed cost of $23,000 to set up production. Each unit costs $3.82 in variable costs for labor and materials and sells for $6. The break even point where total revenue equals total costs is 10,550 units. At this volume, Great Lakes would spend the same $63,302.75 on fixed and variable costs and make $0 profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Great Lakes Automotive

    Known Parameters / Inputs

    Selling price per unit Fixed cost Variable cost per unit
    Variables

    $6.00 $23,000.00 $3.82

    Purchases a gear assembly for $6 per unit. To set up the process. $ 3.82 per unit for labor and materials. At what volume would these options cost Great Lakes the same amount of Break Even Point Answer = 10550 units.

    Number of units, X
    Results Total revenue

    10550.4587

    Fixed cost Total variable cost Total cost Profit

    $63,302.75 $23,000.00 $40,302.75 $63,302.75 $0.00

    Goal Seek, Profit set to 0.

    eat Lakes the same amount of money?

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