Two automatic systems for dispensing digital topography maps are compared by a geoseismic consulting company.
The accompanying breakeven chart of the comparison of these systems ((System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives.
a) What is the fixed cost for System I?
b) What is the fixed cost for System II?
c) What is the variable cost per map dispensed for System I?
d) What is the variable cost per map dispensed for System II?
e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs?
f) For what range of annual number of maps dispensed is System I recommended?
g) For what range of annual number of maps dispensed is System II recommended?
h) At 3,000 maps per year, what are the marginal and average map costs for each system?
Homework Answers
Solution:
Given data:
Two automatic systems for dispensing maps are being compared by the state highway department.
The total cost for system 1 is y1 = 0.9 x + 1.0, and
Total cost for system 2 is y2 = 0.1 x + 5.
a) What are the fixed and variable costs for system 1?
Variable cost = 0.9 Fixed cost = 1
(b) What are the fixed and variable costs for system 2?
Variable cost = 0.1 Fixed cost = 5
(c) What is the number of maps dispensed at which the two systems have equal annual costs?
0.9 x + 1.0 = 0.1 x + 5 0.8x = 4 x=5
(d) For what range of annual number of maps dispensed is system 1 recommended?
0,5
Add Answer to:
Two automatic systems for dispensing digital topography maps are
compared by a geoseismic consulting company.
The...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. HighStep is considering opening another store that is expected to have the revenue and cost relationships shown here. (Click the icon to view...
70CDI com%252Fmghmiddleware%252Fm YouTube Maps hapters 1. 2.&3 0 Saved Harris company manuractures and sells a single...
70CDI com%252Fmghmiddleware%252Fm YouTube Maps hapters 1. 2.&3 0 Saved Harris company manuractures and sells a single producL A partially completed schedule of the company s total costs and costs per unit over the relevant range of 54,000 to 94,000 units is given below. Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 84,000 units during the year at a selling...
Q4. Sales of Internet of Tea Makers have boomed. So much so that our company now operates two con...
Q4. Sales of Internet of Tea Makers have boomed. So much so that our company now operates two construction plants, one in Australia (plant I), and one overseas (Plant II). Plant I can produce 200,000 Internet of Tea Makers a year, whereas Plant II can produce 600,000 Internet of Tea Makers a year. The annual fixed cost of Plant I is $150,000 per year and the variable cost is $85 per IoT maker. The annual fixed cost of Plant II...
3) Two new rides are being compared by a local amusement park in terms of their...
3) Two new rides are being compared by a local amusement park in terms of their annual operating costs. The two rides are assumed to be able to generate the same level of revenue (and thus the focus is on costs) The Tummy Tugger ('Tug") has fixed costs of $ 10,000 per year and variable costs of $2.50 per visitor. The Head Buzzer ("Buzz") has fixed costs of $4,000 per year and variable costs of $4 per visitor. Provide answers...
I. A company sells a product which has a unit sales price of $10, unit variable...
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
The WalkRite Shoe Company operates a chain of shoe stores that sell 10 different styles of...
The WalkRite Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. WalkRite is considering opening another store that is expected to have the revenue and cost relationships shown here. Unit Variable Data (per pair...
Can you please explain how I can do this problem please Intel Systems manufactures an optical...
Can you please explain how I
can do this problem please
Intel Systems manufactures an optical switch that it uses in its final product. Intel Systems incurred the following manufacturing costs when it produced 71.000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Intel Systems the switch for $16.00 per unit. If Intel Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared...
Copy of An operations manager is considering three different production systems for the following year. System...
Copy of An operations manager is considering three different production systems for the following year. System A has a fixed cost of $30,000 and a variable cost of $10 per unit. System B has a fixed cost of $15,000 and a variable cost of $20 per unit. The third option is outsourcing, which has a cost of $40 per unit. At what range of volume the System B is most economical? a. 750 and above b. 750 to 1000 c....
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
please complete all 7 parts. Thank you The Walking Shoe Company operates a chain of shoe...
please complete all 7 parts. Thank you
The Walking Shoe Company operates a chain of shoe stores that coll 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. Auntis defined as a pair of shoes. Each stor has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission Walking is considering opening another store that is expected to have the revenue and cost relationships shown here...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. HighStep is considering opening another store that is expected to have the revenue and cost relationships shown here. (Click the icon to view...
70CDI com%252Fmghmiddleware%252Fm YouTube Maps hapters 1. 2.&3 0 Saved Harris company manuractures and sells a single producL A partially completed schedule of the company s total costs and costs per unit over the relevant range of 54,000 to 94,000 units is given below. Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 84,000 units during the year at a selling...
Q4. Sales of Internet of Tea Makers have boomed. So much so that our company now operates two construction plants, one in Australia (plant I), and one overseas (Plant II). Plant I can produce 200,000 Internet of Tea Makers a year, whereas Plant II can produce 600,000 Internet of Tea Makers a year. The annual fixed cost of Plant I is $150,000 per year and the variable cost is $85 per IoT maker. The annual fixed cost of Plant II...
3) Two new rides are being compared by a local amusement park in terms of their annual operating costs. The two rides are assumed to be able to generate the same level of revenue (and thus the focus is on costs) The Tummy Tugger ('Tug") has fixed costs of $ 10,000 per year and variable costs of $2.50 per visitor. The Head Buzzer ("Buzz") has fixed costs of $4,000 per year and variable costs of $4 per visitor. Provide answers...
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Can you please explain how I
can do this problem please
Intel Systems manufactures an optical switch that it uses in its final product. Intel Systems incurred the following manufacturing costs when it produced 71.000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Intel Systems the switch for $16.00 per unit. If Intel Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
please complete all 7 parts. Thank you
The Walking Shoe Company operates a chain of shoe stores that coll 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. Auntis defined as a pair of shoes. Each stor has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission Walking is considering opening another store that is expected to have the revenue and cost relationships shown here...
Most questions answered within 3 hours.
-
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 6 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 9 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 11 hours ago