1) An industrial company produces parking meters. Last year the company produced 3 600 units which meant a 60% capacity utilization rate. The total costs were R 1 242 000 last year. By running the company at a maximum capacity the total costs would be R 1 530 000. The selling price per meter is R 322.50. a) Determine the variable costs per meter b) Determine the total fixed costs c) Determine the financial result last year provided all produced meters could be sold
1) An industrial company produces parking meters. Last year the company produced 3 600 units which meant a 60% capacity utilization rate. The total costs were R 1 242 000 last year. By running the company at a maximum capacity the total costs would be R 1 530 000. The selling price per meter is R 322.50. a) Determine the variable costs per meter b) Determine the total fixed costs c) Determine the financial result last year provided all produced meters could be sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1) An industrial company produces parking meters. Last year the company produced 3 600 units which meant a 60%
capacity utilization rate. The total costs were R 1 242 000 last year. By running the company at a maximum capacity the
total costs would be R 1 530 000. The selling price per meter is R 322.50.
a) Determine the variable costs per meter
b) Determine the total fixed costs
c) Determine the financial result last year provided all produced meters could be sold
d) Determine the maximum profit which this company could achieve
e) Determine the break-even point. Proof your answer!
f) Show the fixed costs, total costs, total proceeds, and break-even-points in one graph! Indicate the loss section as well
as the profit section!
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