Homework Answers
Here, Price = $15 / unit
Variable costs = $5 / unit
FC = $10,000
Break even quantity = FC / (P - VC) = 10,000 / (15 - 5) = 1,000 units
The plant operates 10% above the BEP mean the plant is producing 1000 + (0.10 * 1000) = 1,100 units.
Total revenue = P * Q = $15 * 1100 = $16,500
Total Costs = TFC + TVC = 10,000 + ($5 * 1100) = $15,500
Total Profit = TR - TC = 16,500 - 15,500 = $1,000
Profit per unit = TP / Q = 1000 / 1100 = $0.91
Thus, profit per unit per month is $0.91.
Add Answer to:
Juestion 8 points Save Anew A plant produces pocket radios with a fixed cost of $10,000/month....
uces 10,000 units/month. Find breakeven level if FC- $85,000 /month, revenue (8 Marks) Question 5:i) A plant units/mont...
uces 10,000 units/month. Find breakeven level if FC- $85,000 /month, revenue (8 Marks) Question 5:i) A plant units/mont is S6/unit and variable cost is $4/unit. Determine expected monthly profit or loss Solution: Perform a make/buy analysis where the common variable is X, the number of units produced each year. AW relations are: Aw,make=-18,000(A/P, 15%,6) Away =-1.SX +2,000(A/F,15%,6)-04X Draw the diagram showing the breakeven point and which alternative should be selected if production level (12 Marks) is less than breakeven quantity?...
Remaining Time: 13 minutes, 46 seconds. Question Completion Status: QUESTION 4 15 po A plant produces...
Remaining Time: 13 minutes, 46 seconds. Question Completion Status: QUESTION 4 15 po A plant produces 15,000 units/month. Find breakeven level if FC - $75,000 /month, revenue is $8/unit and variable cost is $2.50/unit, ddetermine the expected monthly profit or loss. 7500 QUESTION 5 15 points Handheld fiber optic meters are useful for measuring temperature, pressure, and strain. The fixed costs associated with manufacturing are 5800.000 per year. If a base unit sells for $2950 and its variable cost is...
A small factory produces a small toy with a fixed cost of S10,000/month. If the factory...
A small factory produces a small toy with a fixed cost of S10,000/month. If the factory manager wants to have a profit of $2 per unit, the revenue is $15/unit and variable cost is $5/unit what is quantity to achieve this profit? 6668
A factory has a capacity of 2,100 units per month. The fixed cost is $400,000 per month
A factory has a capacity of 2,100 units per month. The fixed cost is $400,000 per month. The variable cost is $100 per unit, and the selling price is $250 per unit 1-The break-even point in number of pumps per month is _______ 2-The revenue at the break-even point is _______ $ 3-The profit at the plant capacity is _______ $ 4-The percentage reduction that will occur in the break-even point if the fixed cost is reduced by 18% and unit variable cost by...
A company produces circuit boards used to upgrade computer equipment. The fixed cost is $42,000 per...
A company produces circuit boards used to upgrade computer equipment. The fixed cost is $42,000 per month, and the variable cost is $53 per circuit board. The selling price per unit isP=$150 – 0.02D. Maximum output of the plant is 4,000 units per month. Determine the optimal demand for this product. What is the maximum profit per month? At what volume does breakeven occur? What is the company’s range of profitable demand?
A plant operation has fixed costs of $1,000,000 per year, and its output capacity is 100,000...
A plant operation has fixed costs of $1,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $65 per unit. a. Construct the economic breakeven chart. b. Compare annual profit when the plant is operating at 85% of capacity with the plant operation at 100% capacity. Assume that the first 85% of capacity output is sold at $65 per unit and that the remaining 15%...
A plant operation has fixed costs of $3,000,000 per year, and ts output capacity is 100,000...
A plant operation has fixed costs of $3,000,000 per year, and ts output capacity is 100,000 electrical appliances per year. The vaniable cost is $30 per unit, and the product sells for $90 per unit a. Construct the economic breakeven chart b. Compare annual profit when the plant is operating at 70% of capacity with the plant opera on at 100% capacity Assume that the frst 70% of capacity output s sold at 90 per unit and that the remaining...
Activity 12.4 - Price Calculations - Marginal Analysis Fixed Costs are $10,000 and Variable Cost per...
Activity 12.4 - Price Calculations - Marginal Analysis Fixed Costs are $10,000 and Variable Cost per unit is $10 Price Unit Sales Total Variable Cost Gross Profit Total Revenue -Price X Unit Sales - Variable cost per unit X Unit Sales Total Production Cost - Total Variable Cost+ Fixed Costs - Total Revenue - Total Production Cost $60 500 $50 1,000 $40 1,500 $30 2.000 $20 2,500
Folding Hinge Sliding Mechanism Design Design Manufacturing Plant Manufacturing Plant Fixed Cost ...
Folding Hinge Sliding Mechanism Design Design Manufacturing Plant Manufacturing Plant Fixed Cost (£) 355,000 855,000 Cost per unit production (E/unit) 230 150 Revenue per unit E/unit) 650 550 Daily production capacity 120 150 (maximum number of units per day assuming no defects) 1) A manufacturer of collapsible bicycles has developed two design options for city commuters. Each design option requires different manufacturing plants because one design option is for a foldable hinge design and the other design option is for...
Total fixed costs are $10,000. Unit variable cost is $30. At current selling price of $75,...
Total fixed costs are $10,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? -NO, because a lower price always reduces profit -YES, because revenue will increase by $12,750 -YES, because profit will increase by $3,750
uces 10,000 units/month. Find breakeven level if FC- $85,000 /month, revenue (8 Marks) Question 5:i) A plant units/mont is S6/unit and variable cost is $4/unit. Determine expected monthly profit or loss Solution: Perform a make/buy analysis where the common variable is X, the number of units produced each year. AW relations are: Aw,make=-18,000(A/P, 15%,6) Away =-1.SX +2,000(A/F,15%,6)-04X Draw the diagram showing the breakeven point and which alternative should be selected if production level (12 Marks) is less than breakeven quantity?...
Remaining Time: 13 minutes, 46 seconds. Question Completion Status: QUESTION 4 15 po A plant produces 15,000 units/month. Find breakeven level if FC - $75,000 /month, revenue is $8/unit and variable cost is $2.50/unit, ddetermine the expected monthly profit or loss. 7500 QUESTION 5 15 points Handheld fiber optic meters are useful for measuring temperature, pressure, and strain. The fixed costs associated with manufacturing are 5800.000 per year. If a base unit sells for $2950 and its variable cost is...
A small factory produces a small toy with a fixed cost of S10,000/month. If the factory manager wants to have a profit of $2 per unit, the revenue is $15/unit and variable cost is $5/unit what is quantity to achieve this profit? 6668
A plant operation has fixed costs of $3,000,000 per year, and ts output capacity is 100,000 electrical appliances per year. The vaniable cost is $30 per unit, and the product sells for $90 per unit a. Construct the economic breakeven chart b. Compare annual profit when the plant is operating at 70% of capacity with the plant opera on at 100% capacity Assume that the frst 70% of capacity output s sold at 90 per unit and that the remaining...
Activity 12.4 - Price Calculations - Marginal Analysis Fixed Costs are $10,000 and Variable Cost per unit is $10 Price Unit Sales Total Variable Cost Gross Profit Total Revenue -Price X Unit Sales - Variable cost per unit X Unit Sales Total Production Cost - Total Variable Cost+ Fixed Costs - Total Revenue - Total Production Cost $60 500 $50 1,000 $40 1,500 $30 2.000 $20 2,500
Folding Hinge Sliding Mechanism Design Design Manufacturing Plant Manufacturing Plant Fixed Cost (£) 355,000 855,000 Cost per unit production (E/unit) 230 150 Revenue per unit E/unit) 650 550 Daily production capacity 120 150 (maximum number of units per day assuming no defects) 1) A manufacturer of collapsible bicycles has developed two design options for city commuters. Each design option requires different manufacturing plants because one design option is for a foldable hinge design and the other design option is for...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 2 seconds ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 1 minute from now -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 2 minutes ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 10 minutes ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 13 minutes ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 18 minutes ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 21 minutes ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 59 minutes ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 36 minutes ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 40 minutes ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 51 minutes ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 43 minutes ago