Question

pro that can be made for a volume of 50: A) $80. B) $500 C) 5580 D) 420 Use the following to answer questions 3-5: Pace Tech Engineering Ine, manufactures an electronic toy. The company has a building with a floor area of 180,000 square feet for both the manufacturing and warehousing operations. The company produces all of the components that go into the toy. Variable costs are estimated to be $20 per unit, and fixed costs per year are $10,875. The selling price per unit is $39. 3. The breakeven quantity for the item assembled in the plant is A) 544 B) 279 C) 572 D) 434 4. The profit made by the company, if it sold 1.000 units in a year is A) $39,000 B) $9,875 C) $29,875 D) $8,125 5. Determine the number of units/year required to be sold to make a profit of $25,000. A) 1,625 B) 641 C) 1,889 D) 1,429

Answer 1

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19 03 Cost of a unit = $20 Cost of tumit = $20 Profit on kurit. SP= $39, Sp=457 = 39-20 = $19 ② Breakeren qenty = 10,875 ~/572 units) 1000 units: $20 xlocot 10,875 = $30,87s Perofit= (39x1000) – 30,875 = 188125] & Profit = 25,000 Actual profit including fixed cost = 25000 + 10,875 = 35,875 . #units = 356 [1889)