3. Kosar Manufacturing has collected the following information on one of its major products. Most efficient production rate 2,200 + 35 units per period Production change costs $30 per unit of change (from the most efficient production rate 2,100 + 35 units period) Inventory costs S7 per unit per period (on closing inventory balance) Backorder costs $15 per unit to carry demand into next period Beginning inventory "X*20" units 田 Period Demand (units) 3,000 +35 2,300 1,800 + 35 3 Calculate a level production schedule that yields 35 inventory at the end of period 6. 4. 2,800 5. 2,000 + 35 2,300 6. Total Production Ending Inventory Regular Production Extra Quarter Demand Production 3. 4.

3. Kosar Manufacturing has collected the following information on one of its major products. Most efficient production rate 2,200 + 35 units per period Production change costs $30 per unit of change (from the most efficient production rate 2,100 + 35 units period) Inventory costs S7 per unit per period (on closing inventory balance) Backorder costs $15 per unit to carry demand into next period Beginning inventory "X*20" units 田 Period Demand (units) 3,000 +35 2,300 1,800 + 35 3 Calculate a level production schedule that yields 35 inventory at the end of period 6. 4. 2,800 5. 2,000 + 35 2,300 6. Total Production Ending Inventory Regular Production Extra Quarter Demand Production 3. 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Cost-Volume-Profit Chart The cost-volume-profit chart shows the relationship between sales volume, costs, and profit. To cre this chart, we need to calculate the following values: - Contribution Margin per Unit: Selling Price - Variable Cost per Unit - Contribution Margin Ratio: Contribution Margin per Unit / Selling Price - Break-Even Point: Fixed Costs / Contribution Margin per Unit - Profit: (Unit Sales * Selling Price) - (Unit Sales * Variable Cost per Unit) - Fixed Costs For the first 100 units of clever wearable devices, we can calculate these values as follows: - Contribution Margin per Unit: $150 $50 = $100 - Contribution Margin Ratio: $100/$150 = 0.67 or 67% - Break-Even Point: $10,000/$100 = 100 units - Profit: (Unit Sales $150) - (Unit Sales * $50) - $10,000 We can plot these values on a graph with unit sales on the x-axis and revenue, costs, and profit on the y-axis.
Question 4
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14 The break-even point in unit sales increases when variable expenses: Decrease and the selling price increases. Decrease and the selling price remains unchanged. Increase and the selling price remains unchanged. Remain unchanged and the selling price increases.
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please read the question as there are similar questions with this type of table