# Bruggs & Strutton

The break-even point

The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the “Snooper.”  Cost and revenue data for the “Snooper” are given below, based on sales of 40,000 units.

Don't use plagiarized sources. Get Your Custom Essay on
Bruggs & Strutton
Just from \$13/Page

Sales \$1,600,000

Less: Cost of goods sold    1,120,000

Gross margin                 \$   480,000

Less: Operating expenses      100,000

Operating income before taxes \$   380,000

Cost of goods sold consists of \$800,000 of variable costs and \$320,000 of fixed costs.  Operating expenses consist of \$40,000 of variable costs and \$60,000 of fixed costs.

Required:

A. Calculate the break-even point in units and sales dollars.

B. Calculate the safety margin.

C. Bruggs & Strutton received an order for 6,000 units at a price of \$25.00.  There will be no increase in fixed costs, but variable costs will be reduced by \$0.54 per unit because of cheaper packaging.  Determine the projected increase or decrease in profit from the order.

D. Bruggs also received an order for 2,500 units at \$29 per unit.  If packaging costs will not be reduced on this order and only one order (“C” or “D”) can be accepted, which order is more attractive?

The break-even point
The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the “Snooper.”  Cost and revenue data for the “Snooper” are given below, based on sales of 40,000 units.
Sales \$1,600,000
Less: Cost of goods sold    1,120,000
Gross margin                 \$   480,000
Less: Operating expenses      100,000
Operating income before taxes \$   380,000
Cost of goods sold consists of \$800,000 of variable costs and \$320,000 of fixed costs.  Operating expenses consist of \$40,000 of variable costs and \$60,000 of fixed costs.
Required:
A. Calculate the break-even point in units and sales dollars.
B. Calculate the safety margin.
C. Bruggs & Strutton received an order for 6,000 units at a price of \$25.00.  There will be no increase in fixed costs, but variable costs will be reduced by \$0.54 per unit because of cheaper packaging.  Determine the projected increase or decrease in profit from the order.
D. Bruggs also received an order for 2,500 units at \$29 per unit.  If packaging costs will not be reduced on this order and only one order (“C” or “D”) can be accepted, which order is more attractive?

# What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

#### Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

#### On-Time Delivery

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

#### Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

#### Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

#### Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

#### Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.

#### Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

# Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

##### Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

##### Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

##### One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

##### Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

## Free Features \$66FREE

• Most Qualified Writer \$10FREE
• Plagiarism Scan Report \$10FREE
• Unlimited Revisions \$08FREE
• Paper Formatting \$05FREE
• Cover Page \$05FREE
• Referencing & Bibliography \$10FREE
• Dedicated User Area \$08FREE

#### Our Services

• On-time Delivery

We create perfect papers according to the guidelines.

##### Professional Editing

We seamlessly edit out errors from your papers.

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

# Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

Categories
All samples
Essay (any type)
Essay (any type)
The Value of a Nursing Degree
Nursing
2

# It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.

# Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

# See How We Helped 9000+ Students Achieve Success

#### We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

• Clear elicitation of your requirements.
• Customized writing as per your needs.

#### We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

• Proactive analysis of your writing.
• Active communication to understand requirements.