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Course Project Assume that two companies, Brake, Inc. and Carbo,

 

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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