A company has determined that the price and the monthly demand of one of its products...
A company has determined that the price and the monthly demand of one of its products are related by the equation
where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,125/month, and the variable costs are $100/unit. Use this information to answer Problem 2-52 and Problem 2-53. Select the closest answer.
2-52 What is the optimal number of units that should be produced and sold each month?
- 10 units
- 15 units
- 20 units
- 25 units
2-53 Which of the following values of D represents the breakeven point?
- 10 units
- 15 units
- 20 units
- 25 units
Homework Answers
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A company has determined that the price and the monthly demand
of one of its products...
A company has determined that the price and the monthly demand of one of its products...
A company has determined that the price and the monthly demand of one of its products are related by the equation D= (375-p) where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,176/month, and the variable costs are $95/unit. Which of the following values of D represents the breakeven point? Choose the closest answer below. O A. 25 OB. 22 O C. 14 OD. 11
Problem 2: Read SWK, Chapter 2.2 2. A company has determined that the price and the...
Problem 2: Read SWK, Chapter 2.2 2. A company has determined that the price and the monthly demand of one of its products are related by the equation D= S(400 - p) D= 4 Where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are £1,125/month, and the variable costs are £100/unit Use this information to answer the following questions: 2a) What is the optimal number of units that should be...
A company has determined that the price and monthly demand of one of its products are related by the equation D = (4000...
A company has determined that the price and monthly demand of one of its products are related by the equation D = (4000 - p)2/3 where p is the price per unit in dollars and D is the monthly demand in units. The associated fixed costs are $850 per month, and the variable costs are $3,687.5 per unit. What is the optimal number of units (rounded to the next whole number) that should be produced and sold each month?
Question Completion Status QUESTION 4 Your monthly mortgage payment (principal plus interest) is $1,650. you have...
Question Completion Status QUESTION 4 Your monthly mortgage payment (principal plus interest) is $1,650. you have a 24-year loan with a fixed interost rate of 0.4 % per month, how much did you borrow from the bank to purchase your house (rounded to the nearest whole dolar)? (Do not enter a dollar sign $ with your answer) 15 points QUESTION 15 points Consider the following sequence of year-end cash flows ΕΟΥ 3 Cash Flow What is the uniform annual equivalent...
A company has established that the relationship between the sales price for one of its products...
A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 75-0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $800 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a...
A store faces demand for one of its popular products at a constant rate of 2,400...
A store faces demand for one of its popular products at a constant rate of 2,400 units per year. It costs the store $70 to process an order to replenish stock and $20 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 12 working days after an order is placed. The store buys the product for $90 per unit and sells it for $160 per unit. At the moment the store...
wondering how to figure this out. also show steps for wach one 15. Dental Comfort Services...
wondering how to figure this out. also show steps for wach
one
15. Dental Comfort Services provides dental cleanings to its patients. The selling price of a cleaning is $150 and the variable costs associated are $85. The monthly relevant fixed costs are $10,000. Required: a. What is the breakeven point in cleanings? b. What is the margin of safety in dollars, assuming sales total $30,000? c. What is the breakeven level in cleanings, assuming variable costs decrease by 20%?...
The table below shows the monthly demand schedule for a good in a duopoly market. The...
The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each faces $5,000 of fixed costs per month. There are no marginal costs. Quantity Price ($) TR ($) MR ($) 0 40 0 — 200 35 7,000 35 400 30 12,000 25 600 25 15,000 15 800 20 16,000 5 1,000 15 15,000 −5 1,200 10 12,000 −15 1,400 5 7,000 −25 1,600 0 0 −35 Instructions: Enter your...
1.b. We expect one of our products to have an annual demand or 10 000 units....
1.b. We expect one of our products to have an annual demand or 10 000 units. It costs $15 to place another order, with a lead time of 20 days. It costs $25 per unit to make, and annual holding costs are 10%. • What is the optimal size of our order and what inventory level should trigger a new order?
I need your support for Part B Only Zandri Company is considering replacing its existing cutting...
I need your support for Part B Only
Zandri Company is considering replacing its existing cutting machine with a new machine that will help reduce its defect rate. Relevant information for the two machines includes the following: Cost Item Existing Machine New Machine Monthly fixed costs $ 28,000 $ 42,000 Variable cost per unit $ 41 $ 36 Sales price per unit $ 52 $ 52 Requirements (a) Determine the sales level, in number of units, at which the costs...
A company has determined that the price and the monthly demand of one of its products are related by the equation D= (375-p) where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,176/month, and the variable costs are $95/unit. Which of the following values of D represents the breakeven point? Choose the closest answer below. O A. 25 OB. 22 O C. 14 OD. 11
Problem 2: Read SWK, Chapter 2.2 2. A company has determined that the price and the monthly demand of one of its products are related by the equation D= S(400 - p) D= 4 Where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are £1,125/month, and the variable costs are £100/unit Use this information to answer the following questions: 2a) What is the optimal number of units that should be...
Question Completion Status QUESTION 4 Your monthly mortgage payment (principal plus interest) is $1,650. you have a 24-year loan with a fixed interost rate of 0.4 % per month, how much did you borrow from the bank to purchase your house (rounded to the nearest whole dolar)? (Do not enter a dollar sign $ with your answer) 15 points QUESTION 15 points Consider the following sequence of year-end cash flows ΕΟΥ 3 Cash Flow What is the uniform annual equivalent...
A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 75-0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $800 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a...
A store faces demand for one of its popular products at a constant rate of 2,400 units per year. It costs the store $70 to process an order to replenish stock and $20 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 12 working days after an order is placed. The store buys the product for $90 per unit and sells it for $160 per unit. At the moment the store...
wondering how to figure this out. also show steps for wach
one
15. Dental Comfort Services provides dental cleanings to its patients. The selling price of a cleaning is $150 and the variable costs associated are $85. The monthly relevant fixed costs are $10,000. Required: a. What is the breakeven point in cleanings? b. What is the margin of safety in dollars, assuming sales total $30,000? c. What is the breakeven level in cleanings, assuming variable costs decrease by 20%?...
1.b. We expect one of our products to have an annual demand or 10 000 units. It costs $15 to place another order, with a lead time of 20 days. It costs $25 per unit to make, and annual holding costs are 10%. • What is the optimal size of our order and what inventory level should trigger a new order?
I need your support for Part B Only
Zandri Company is considering replacing its existing cutting machine with a new machine that will help reduce its defect rate. Relevant information for the two machines includes the following: Cost Item Existing Machine New Machine Monthly fixed costs $ 28,000 $ 42,000 Variable cost per unit $ 41 $ 36 Sales price per unit $ 52 $ 52 Requirements (a) Determine the sales level, in number of units, at which the costs...
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