Course Project
Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results:
Brake, Inc.
Carbo, Inc.
Sales
$300,000
$300,000
Variable Costs
60,000
180,000
Fixed Costs
210,000
90,000
Operating Income
$30,000
$30,000
Tasks:
- Calculate the contribution margin and breakeven point for both companies.
- Compare the two companies. What conclusions could you make regarding the use of operating leverage employed by the two firms?
- What recommendations would you make to the two companies and why?
Submission Details:
- Submit a 2-3 page Microsoft Word document, using APA style.
- Name your file: SU_FIN3030_W4_CP_LastName_FirstInitial.doc
- Submit your assignment to the Submissions Area by the due date assigned.
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