An Electronic Company produces calculators. The fixed cost of producing calculators is 450,000. The variable cost of producing a calculator is 100. The company sells the calculators for 250. Given an annual volume of 50,000 calculators. Determine the units to produce to cover-up the fixed cost. Determine the profit at 50,000 volume of production. Determine the amount of sales to be generated in order for the firm not to incur any profit nor loss. If price increases to 400 all costs are the same, what is the new break-even units?
An Electronic Company produces calculators. The fixed cost of producing calculators is 450,000. The variable cost of producing a calculator is 100. The company sells the calculators for 250. Given an annual volume of 50,000 calculators. Determine the units to produce to cover-up the fixed cost. Determine the profit at 50,000 volume of production. Determine the amount of sales to be generated in order for the firm not to incur any profit nor loss. If price increases to 400 all costs are the same, what is the new break-even units?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 4.2IP
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An Electronic Company produces calculators. The fixed cost of producing calculators is 450,000. The variable cost of producing a calculator is 100. The company sells the calculators for 250. Given an annual volume of 50,000 calculators.
Determine the units to produce to cover-up the fixed cost.
Determine the profit at 50,000 volume of production.
Determine the amount of sales to be generated in order for the firm not to incur any profit nor loss.
If price increases to 400 all costs are the same, what is the new break-even units?
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