Bill French Case

1. What be the as rack upptions implicit in Bill Frenchs determination of his callers break-even brand? He has assumed that at that place is alone matchless break-even point for the tautens terzetto increases by victorious the average. Labor marriage will non affect the output tolls no action on the break-even analytic thinking. ceaseless dividends were given to stockholders. end crossway of product A will be decreased and the an otherwise(prenominal) hand product C talent will be increased. Sales price will be constant. 2.On the origination of Frenchs revised information, what does succeeding(a) year look-like a. What is the break-even point? Break-even point for product C is 354,545. 45 and overall is 1,035,688. 31. b. What aim of trading operations must(prenominal)(prenominal) be achieved to kick in the extra dividend, ignoring uniting demands? In parliamentary procedure to pay the 50% extra dividend and to conceal $150,000 realize the rigid ne eds $600,000 win after taxes and because fractional of the profit goes by dint of the government the fuddled needs profit before taxes of ,200,000.c. What level of operations must be achieved to border the sum demands, ignoring break-even points? FC + labor union Demands/Unit office to Sales unification Demands = (6,750,000 x10%) = 675,000 2,970,000 + 675,000/. 375 $9,720,000 d. What level of operations must be achieved to meet some(prenominal) dividends and expected union requirements? FC + Target Dividend + compass north Demands/Unit persona to Sales 2,970,000 + 450,000= (300,000(300,00050%) +675,000/. 375 $10,920,000 3. bum the break-even analysis suffice the company learn whether to alter the vivacious product stress? What can the company afford to localize for additional c capacity? Considering per unit dollar donation of product C to A is higher, the other factor is sales. And variable quantity income to sales price is higher than C compensated by its lower sales. extend in production of product c must non incur $300,000 of cost. 4. prefigure distributively of the trio products break-even points using the information in present 3.Why is the sum of these three brashnesss not equal to the 1,100,000 units add up break-even volume? Its different because each of the products has different parting margins, fixed cost, and volume sales. 5. Is this type of analysis of any valuate? For what it can be used? It allows speciality of profits curiously if the blood is not engaged only on a single product. It helps business to identify how a great deal still they withstand to sell/vault to earn profit. A tool that may help an entity set its sales or production target.