MET 235 Homework 8
xlsx
keyboard_arrow_up
School
Clemson University *
*We aren’t endorsed by this school
Course
211
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
xlsx
Pages
9
Uploaded by unojmiller1
Problem 2.2
Given: V =
30,000
Volume
P =
$700/unit
Price
FC =
$ 5,000,000.00 Fixed Costs
TVC=
$ 6,000,000.00 Total Variable Costs
Solutions: VC/I =
$200/unit
10000 uniits
Answer: 10,000 units
Recommendation: Problem:
A copier company plans to produce 30,000 copiers next year. They will sell for $700 each. The fix
operation are $5 million and total variable costs are $6 million. What is the break-even point?
Find: Volume Break Even Point, V
BEP
Assumptions: Taxes do not play a factor V
BEP
=
V
BEP
=
?_𝐵𝐸𝑃=𝐹𝐶/
(𝑃−?𝐶/𝐼)
?𝐶/𝐼=𝑇?𝐶/?
Jacob Miller xed costs of
Problem 2.4 Jacob M
Given: V =
12,000
Volume
FC =
$ 420,000.00 Fixed Costs
C =
60%
Contirbution P =
$10/unit
Price
Solution: VC/I =
$4/unit
70000 uniits
Answers: 70,000 units
Recommendations: Problem: Tawian Shoe Company produces 12,000 pairs of running shoes per month. Annual fixed costs ar
contribution from each pair is 60 percent of their $10 per-unit selling price.
Find the break-even point.
Find: Volume Break Even Point, V
BEP
Assumptions: Taxes do not play a factor V
BEP
=
V
BEP
=
?_𝐵𝐸𝑃=𝐹𝐶/
(𝑃−?𝐶/𝐼)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Miller re $420,000 and the
Problem 2.6
Given: P =
$24/case
FC =
$ 162,000.00 VC =
$15/case
Cap =
50,000 cases/season
Find: A) Contribution, C
C) What is the profit, or loss at if the plant operates at full capacity for the season? Solution: A )
C =
$9.000
B )
18,000 cases
C )
Profit =
$288,000.000
Answers: A )
C =
$9.000
B )
18,000 cases
C )
Profit =
$288,000.000
Recommendation: Problem: Florida Packing Company packages orange juice in 16-ounce cans which they sell to grocery distribu
$24 per case. The packing company has fixed costs of $162,000 and variable costs of $15 per case. The plant 50,000 cases per season. B) Volume Break Even Point, V
BEP
Assumptions: Taxes do not play a factor V
BEP
=
V
BEP
=
𝐶=𝑃−?𝐶
?_𝐵𝐸𝑃=𝐹𝐶/
(𝑃−?𝐶/𝐼)
𝑃𝑟𝑜𝑓𝑖
ution warehouses for has a capacity of 𝑖𝑡 𝑜𝑟 𝐿𝑜𝑠𝑠=(𝐶𝑎𝑝−?_𝐵𝐸𝑃 )∗𝐶
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Problem 2.10
Given: No. of Emplyees =
30
Cap =
1500 loads/year
$80,000
VC =
$170/load
$70,000 /year
FC increase =
$20,000 /year
$90,000 /year
C =
$20/load
Work Days =
250 days
TR =
$300
Find:
A) Current Annual Profit or Loss B)
Solution: A)
TVC =
$255,000
TR =
$450,000
Profit =
$125,000
B)
C =
$300
300
Answer: A)
Profit =
$125,000
B)
300 units
Reommendation: Problem: Great Falls Export Company has 30 employees and handles 1500 loads per year of grain from a warehouse. The firm has fixed costs of $70,000 per year and variable costs of $170 per load. The operatio
considering installing an $80,000 automated material handling system that will increase fixed costs by $2
also increase the per unit contribution of each load by $20. The firm operates 250 days per year, and they
of $300 revenue for each load. C
i
=
FC
1
=
FC
2
=
Volume Break Even, V
BEP
Assumptions: Taxes do not play a factor V
BEP
=
V
BEP
=
Jacob Miller North Dakota ons manager is 20,000 per year. It will y receive an average
Problem 2.12
Jacob Miller Given:
P =
$3,000
What if? 60
20
$60,000
40
$80,000
Find: A)
VC estimate
B) FC estimate
C)
VBEP D)
Profit at 60 units Solution: A)
VC estimate =
$1,000
B) FC estimate =
$40,000
C)
20
D)
Profit at 60 units =
$80,000
Answers: A)
VC estimate =
$1,000
B) FC estimate =
$40,000
C)
20
D)
Profit at 60 units =
$80,000
Problem: Precast Pools, Inc. sells their product for $3,000 each. At a volume of 20 units, their labors, materials, overhead, and other costs total $60,000, and at a volume of 40 units, the total is $80,000. V
1
=
TVC
1
=
V
2
=
TVC
2
=
Assumptions: Taxes do not play a factor V
BEP
=
V
BEP
=
Recommendations: I would not recommend going below a volume of 20 units because you wouldn’t ever see profit.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help