annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: 1. Find the break-even point in units. 2. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.)
Q: A shoe company will make a new type of shoe. The fixed cost for the production will be $24,000. The…
A: Answer: Fixed cost for a firm remains unchanged in the short run thus it does not vary with the size…
Q: The manager at Robert's Cigars wants to determine the lowest cost order policy given the following…
A: * SOLUTION :- *(2)
Q: Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost…
A:
Q: A manufacturing company places a semi-annual order of 24,000 units at a price of $20 per unit. Its…
A: Given: Semi-Annual orders =24000 units The total order quantity per year (A)=24000*2=48000 units…
Q: I have a question about the following question. What is the annual breakeven production quantity…
A: Breakeven point is simply the point where the total revenue is equal to the total cost. It is…
Q: 1. A service station uses 2500 oil filters during the course of a year, and this usage is constant…
A: A = 18.75 λ = 2500 h = 1.5 c = 15
Q: 8.1 The fixed costs at Harley Motors are $1M annually. The main product has revenue of $9.90 per…
A: Breakeven Quantity=Fixed Cost/(Revenue per unit-Variable cost per unit)
Q: TRUE OR FALSE. EXPLAIN. In a break-even chart, for a certain x-value, the alternative with a higher…
A: In the break-even chart, the relationship between the sales and returns is measures based on total…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: Break-Even Units can be calculated using the following formula B.E Units = Fixed Cost / Contribution…
Q: M. P. VanOyen Manufacturing has gone out on bid for a regu lator component. Expected demand is 700…
A: Inventory management encompasses the entire process of managing inventories, from raw materials to…
Q: BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per…
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…
Q: On the break-even chart, the _______ axis represents the total cost of each of the alternatives.
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Calculate the missing values. Express dollar values rounded to two decimal places and break-even…
A: The cost that tends to vary with the level of output is variable cost while the cost that does not…
Q: Operation of margin account for a long position in two gold futures contracts. The initial margin is…
A: In finance, a futures contract is a formal agreement to buy or sell something at a predetermined…
Q: ng started signment you will be working with models for price, revenue, cost and profit for a small…
A: A cost function is a formula that predicts the cost that will be incurred at a certain level of…
Q: 1. A company is considering opening a new product line. The building being considered will have a…
A: The point where the costs of producing a product equal its revenue is called the break-even point..…
Q: Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect…
A: To calculate the cost of VMIC today: Cost of VMIC-100 today = Cost of VMIC-50 5 years ago * Index…
Q: A financial services consulting company bought an office building for $900,000. The company has 10…
A:
Q: Question 12 Table: Variable Costs for Lawns Quantity of lawns Variable costs $0 10 100 20 300 30 500…
A: Total cost of 20th unit =$35*20=$700 Fixed cost of 20th unit =Total cost - variable cost…
Q: Suppose the interest rate is 10%, Calculate the equivalent annual cost of the machine described in…
A: Given the interest rate = 10% Initial cost = $100000 Estimated life = 25 years
Q: The effect to break-even sales when fixed costs increases while sales price and variable costs…
A: Break even occurs when total revenue is equal to the total costs. Break even sales quantity= Fixed…
Q: Smith Equipment has three separate shipments to customers all in the same city. The shipment…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: A business needs to determine how many machines to buy given the following information: Product…
A: Product Demand Processing Time (minutes) 1 10000 6 2 20000 5 3 25000 4
Q: A specialty coffeehouse sells Columbian coffee for $7 per pound at a fairly steady rate of 320…
A: GIVEN : Selling Price, S.P = $7 per pound Annual Demand, D = 320 pounds Cost of beans, C = $1.80 per…
Q: 1) The management of Thompson Controls must decide between three processes for its model D…
A: We find out profits of both high quality product and low quality product, to decide which one should…
Q: True or False T 1.→Profit-can be calculated without including fixed costs. 2. All-costs can-be…
A: HI Student, Thanks for posting the question. As per the guideline, we are providing answer for first…
Q: Problem 6 Your company is in the process of adding a new line for making a new product. The fixed…
A: Given information Fixed cost=$21000 Variable cost=$50 per unit P=-0.5X+300
Q: A manufacturer produces a certain item with the following cost : Selling Price per item P 600.00…
A: Given, Selling Price per item = P 600.00 Labor Cost = P 76.00 per items Material Cost = P 115.00…
Q: The total ingredient (food) cost in a recipe is $4.73; the manager desires a 37.5-percent food cost.…
A: *Hi there , since you have posted multiple questions following our guidelines we will only solve 1…
Q: Northwest manufactures a product requiring 0.5 ounces of platinum per unit The cost of platinum is…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars…
A: A) The break-even point in terms of sales value Break-Even point (sales dollars) = Total Fixed Costs…
Q: Question Question 7 (Breakeven Analysis) You decided to sell Qolx.coffee using Nespresso, machine…
A: The Break even point is basic to establish the relationship between cost variables. It will tell how…
Q: Transportation costs per ton of product vary with distance. For trucks the function is: TCt = 3 +…
A: (1)Substitute d = 1,2,...,10 in TCt,TCr,TCb to get the following table:
Q: Summarize this article. Provide your thoughts.?????Configuration Management vs Change Management…
A: Configuration management and chain management are two distinct concepts, although they are mutually…
Q: ingle Circuit Configuration will always have only three conductors for the three phases. Select one:…
A: In a three-stage framework, three circuit conductors convey three substituting flows (of a similar…
Q: Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has…
A: Let the demand = Q Total cost = Fixed cost + Veriable cost
Q: Question 5 of 16 Sandra's company has a machine that can produce a maximum of 45,000 components per…
A: Breakeven is a point where a firm earns zero profit or at a situation of no profit no loss. It is a…
Q: Q2] (3 Marks) Break Even Formula -based: A company manufactures LED Products has the following data…
A: CM Ratio is the contribution margin ratio stating the increemental sales ratio excluding the…
Q: 6. Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…
Q: Your company presently uses a crew of its own employees for all major maintenance. On average, 44…
A: Introduction Production is the organised activity of transforming resources into finished products…
Q: Shredder Frets, a brand new manufacturer of guitars is looking at what price to charge for it's new…
A: The break-even point refers to the point at which the firms work on no profit and no loss situation…
Q: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant.…
A: When a firm shuts down in short run, it produces zero output. So TVC is zero and thus, Loss = TFC
Q: BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per…
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…
Q: A company plans to design and build transport vehicles for the Army. The cost for the design is…
A: The company's continuous costs are known as recurring expenses. Administrative expenditures, loans,…
Q: 24- 20- Price and cost (cents per kilowatt) 16- 12- 8- S=MC Q
A: Marginal cost alludes to the increment or diminishing in the cost of producing another unit or…
Q: Plan A (Depreciation 3422 ; total anual cost 23922) Plan B (Depreciation 4277 ; total anual cost…
A: The financial worth of a resource diminishes over the long haul because of utilization, mileage, or…
Q: 09. Consider the economic order quantity, with demand of 1650 unit per month (30 days), setup cost…
A: Time between orders is an ecommerce metric that measures how long customers take to place a next…
Q: Explain Equivalent Annual Operating Costs?
A: The monetary value that has been used to manufacture something or provide a service is referred to…
Q: Alpha Associates has the following details: Fixed cost = Rs. 20,00,000 Variable cost per unit = Rs.…
A: Given pieces of information: Fixed cost, FC = 2000000 Variable cost per unit, V =100 Selling price…
Q: the Stand Fan, Wall Fan, and Ceiling Fan. The table below shows the available information on these…
A: Breakeven point is the point when total costs and total revenue are equal and the difference between…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- It costs $50,000 to start a production process. Variable cost is $25 per unit and price is $45 per unit. What is the break-even volume? 2000 units 1000 units 1111 units 2500 unitsA jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $Q VC AVC TC ATC MC $30 1 $40 $50 3 $80 4 $90 What are the fixed costs? If the firm can sell its product for $80, it will sell (circle one) of $ units for a profit/loss/breakeven
- Estimate the unit selling price of an item for which the following data is available. Labor 10 hours at $48/hr Overhead 170% of labor Material Costs $64 each Packing Costs 20% of labor Subcontract Cost $13 each 25% of selling price 50% of selling price Sales Commission Profit $5876.00 each $6096.00 each $367.25 each $2612.00 eachWrite Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. A. What is the breakeven point in (a) sales units and (b) sales dollars? B. How many units must the Write Company sells to earn a profit of $240,000 per year?Calculate the missing values. Express dollar values rounded to two decimal places and break-even volumes rounded up to the next integer. Fixed Cost (FC) per month Variable Cost (VC) Selling Price (5) per unit Total Variable Cost at Break- Revenue (TR) even (TVC) per month Break-even Total Volume (x) per month per month at Break-Even per unit $8,700.00 $24.00 $36.00 $0.00 $0.00 $130,000.00 $470.00 1,030 S0.00 $0.00 $0.00 $740.00 $79.00 22 $0.00 50.00 S0.00 $31.00 $53.00 440 S0.00 S0.00 S0.00 -1°C
- What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x 100 in W x 5 in H each piece. 100 kg each piece. Chargeable weight: 400 kg. Total charges CPT CDG airport, Paris, France Origin pick up fee: Origin handling fee: CAD $0.20/kg CAD $0.20 x 400 = CAD $80.00 CAD $45.00 /shipment CAD $45.00 CAD $45.00 Origin terminal handling charges: CAD $0.04/kg CAD $0.04 x 400 = CAD $16.00 NavCan surcharge: B13A Export Declaration: CAD $0.07/kg CAD CAD $0.07 x 400 = CAD $17.50/shipment CAD $28.00 CAD $17.50 Air freight: $17.50/shipment CAN $4.40/kg Fuel surcharge: CAD $0.15/kg CAD $4.40 x 400 CAD $0.15 x 400 CAD $1,760.00 CAD $60.00 Security surcharge: CAD $0.08/kg CAD $0.08 x 400 CAD $32.00 TOTAL $2,040.50 $2,038.50 $2,006.50 $2,667.47Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, what is the equivalent uniform annual cost of Equipment B? a. P126,070 b. P124,030 c. P129,850 d. P130,870A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?
- Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.The costs of producing a certain commodity consist of 125.00 per unit for labor and material cost and 320.00 per unit for other variable cost. The unit can be sold at 1,200.00. If the production capacity per month is 5,200 units, what maximum fixed amount can the company spend each month of breakeven? Answer: 3,926,000.00 Explain every process.Alfarah Company estimates that variable costs will be 50% of selling price per unit, and fixed costs will total 500,000 The selling price of the product is $5. Instructions 1. Compute the break-even point in (a) units and (b) dollars. 2. Prepare a CVP graph, assuming maximum sales of $3,200,000, (Note: Use$400,000 increments for sales and costs and 100,000 increments for units.) 3. Assuming actual sales are $2million, compute the margin of safety in (a) dollars and (b)as ratio. Note, Variable costs: 50% of the selling price per Fixed costs: $500,000 Selling price per unit: $5 Maximum sales: $3,200,000 Actual sales: $2,000,000 unit