1. A factory engaged in the fabrication of an automobile part with a production capacity of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point?

1. A factory engaged in the fabrication of an automobile part with a production capacity of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit. If demand function is given by p = I. Determine the quantity that the company must sell to cover the fixed costs. II. Find the breakeven point.
1.Following is a summary of basic cost and revenue data for an Engineering Consultation Office. Assuming that the average number of consultation services that they provide per month is 802; use the following information to calculate: Price Per Unit = $22 Units Sold = 802 Total Variable Cost = $9,624 Unit contribution margin and total contribution margin. а. b. Breakeven point if Fixed cost = $5,000. Calculate company margin of safety ratio if 700 consultation services are provided per month. С.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $1,086,800. Total fixed costs equal s8,000,000. Required: 1. What is the contnbution margin per unit? Round your answer to the nearest cent. What is the contribution margin ratio? Round your aniswer to two decimal pleces, (Express as a decimal-based artswer rether then a whole percent amount.) 2. Calculate the salas revenue needed to break even. Round your answer to the nearest dollar. 3. Caloulate the sales revenue needed to achieve a target profit of $245,000. Round your answer to the nearest dollar.
3. A civil engineer has invented a walling material that sells for P1,500/unit. The Fixed Cost of his company is P210,000.00 while the variable cost is P800.00/unit. a) What is the average number of units to be sold for the engineer to break even? Also show a graph. b) If the Variable Cost and Fixed Cost are decreased by 10% and 20% respectively, how much is the "NEW BREAK EVEN" in terms of PESOS?
Which of the following cost functions exhibits cost complementarity? why? A -302 + 401 B. 5Q102 - Q1 C. Q201 - 201 D. -50102 - 701
Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
It is the sum of all costs that are incurred periodically and continuously in order that the project in which an investment has been made may be operated, produce a commodity or service and distribute and sell that commodity or service. Salvage cost Profit Operating cost Fixed cost
D1.
Last year, a company introduced a new version of its main product. The product costs $24002400 to develop (i.e. the start up costs) and $3535 to manufacture each product. Do all the following problems on your page: i) Give a linear equation in the form C(n)=mn+bC(n)=mn+b that gives the total cost to produce nn of these products. Give your answer in function notation. No steps or work are required, just give the function. ii) Find the total cost to produce n=3500n=3500 of these products. Show what numbers you used in your arithmetic calculations. Use function notation in your work. Answer in a complete sentence form with units and context. iii) If the company has $5315053150, how many of these items can be produced? Use function notation in your work. Answer in a complete sentence form with units and context.
Holding costs are 35 MU/unit/year. The ordering cost is 120 MU/order, andsales are reletively constant at 400/month.a) What is the optimal order quantity?b) What is the annual total inventory cost? Please mention formulas and do it in detail so I can understand.