Financial Overview and Break-Even Analysis of Bremend Ltd.Bremend Ltd is a maker of computer stands with unique financial characteristics that affect its profitability. The company’s fixed costs are $500,000, regardless of production amount. Each computer stand sells for $120, with a variable cost of $70 per unit. This yields a contribution margin of $50 per unit, computed by deducting the variable cost from the selling price ($120 – $70 = $50).The factory’s maximum production capacity is 20,000 units. To calculate the break-even threshold, where total revenues equal total costs, split fixed costs by contribution margin per unit.\[\text{break-even point (units)} = \frac{\text{fixed costs}}{\text{contribution margin per unit}} \]\[\text{Break-Even Point} = \frac{\$500,000}{\$50} = 10,000 \text{ units} \].Therefore, Bremend Ltd needsSell 10,000 units to cover all fixed and variable expenditures. At the break-even point, selling 10,000 units generates $1,200,000 in revenue ($120 per unit) and $700,000 in variable costs ($70 per unit).Beyond the break-even threshold, each extra unit sold increases profit. Bremend Ltd expects to earn $1,800,000 in revenue (15,000 units x $120 per unit) and $1,050,000 in variable costs (15,000 units x $70 per unit). After subtracting the fixed expenses from the overall contribution margin (revenue minus variable costs), the greatest profit possible is:Profit = \text{Total Contribution Margin} minus \text{Fixed Costs} \][\text{max profit} = \$750,000 – \$500,000 = \$250,000 \]This research shows that Bremend Ltd can make a maximum profit of $250,000 if it sells 15,000 units as planned.\[\text{Total Contribution Margin} = (\text{Selling Price} – \text{Variable Cost}) �times \text{Units Sold} \]\[\text{Total Contribution Margin} = \$50 * 15,000 = \$750,000 \]\[\text{Maximum
Incremental Analysis Download the Unit VI Assignment Excel worksheet and complete the following problems on the worksheets. Each problem is designated by a worksheet in the tabs at the bottom of th
Incremental Analysis Download the Unit VI Assignment Excel worksheet and complete the following problems on the worksheets. Each problem is designated by a worksheet in the tabs at the bottom of the file. Worksheet Problem 1 Gulf Coast Paddle produces paddleboards for retailers in the United States. The cost of