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Research In Motion

Satisfactory Essays

Research in motion is a Canadian multinational company which is best known for the Blackberry mobile device. The company designs, manufactures and markets wireless solutions for mobile and telecommunication market. Along with the Blackberry the company manufactures various other products such as computer terminal, radio and television broadcasting, wireless communication equipment etc. As Research in motion not only manufactures a single product but multiple products so it should be using multiproduct breakeven analysis.
Break-even analysis calculates the unit or dollar sales needed to generate revenues that exactly match fixed and variable costs to produce net profit of zero. The advantage of break-even is its utility and simplicity.
For example,
Research in motion manufactures two smartphone Blackberry Z3 and Blackberry Q10. The fixed cost is $50000 per month. The company expects the sale of phones as 20% and 30% respectively. Z3 Q10
Selling price per unit $100 $200
Variable cost per unit $50 $100

Break- even point = total fixed expenses Weighted average selling price- weighted average variable expenses

Weighted average selling price= (100*20%) + (200*30%) = 20 + 60 = $80 …show more content…

References
Reilly, C. (2009). Break-even analysis-making it work for your franchise. Franchising World, 41(7), 29-30
Wild, J.J. & Shaw, K.W. 2012. Managerial Accounting. McGraw-Hill Irwin. Edi

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