1. Separate the fixed and variable costs of the company
2. Determine the projected Fixed overheads / Operating expenses of the company for 2023
3. Determine the projected Profit margin of the company’s manufacturing operation
4. Determine the Breakeven point of the company’s manufacturing now ? What is the current level of Safety margin of the company ?
5. Determine the Degree of Operating Leverage (DOL) of the company ?
6. Determine the degree of Financial Leverage (DOL) of the company ?
7. If the company have been selling its rubber glove at an avverage price of $0.40 per pair, what could be the lowest price that company could accept for a special order of say 500,000,000 gloves if the company could create the cpacity conveniently without increasing its operating costs ?
8. Based on the average variable costs of manufacturing per pair, could the company consider taking over a manufacturing space / capacity that could produce at $0.15 per pair. ?
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