Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
Determine the break-even point in speaker sets if operations are shifted to Mexico.
Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.
a. If variable costs remain constant, by how much must fixed costs change?
b. If fixed costs remain constant, by how much must unit variable cost change?
4.Determine the impact (increase, decrease, or no effect) of the following operating changes.