5- XYZ electric company manufactures a number of electric products. Rechargeable light is one of the XYZ's products that sells for $180 per unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Answer the following questions: a) Compute break-even point of the company in units. b) Compute break-even point of the company in dollars. c) Compute the number of rechargeable lights to be sold to earn a net operating income of $189,000 per month

5- XYZ electric company manufactures a number of electric products. Rechargeable light is one of the XYZ's products that sells for $180 per unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Answer the following questions: a) Compute break-even point of the company in units. b) Compute break-even point of the company in dollars. c) Compute the number of rechargeable lights to be sold to earn a net operating income of $189,000 per month

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

E. A company is evaluating the profitability of a new product. The company must rent a space that will cost $50,000 a month, $25,000 a month in equipment rental, and monthly overhead cost of $20,000. It also costs $1000 in labor and $750 in materials to produce each unit. The company thinks the product will sell for $1975 each. How many units will the company need to produce and sell to break even? How many units will the company need to sell if it wants to earn profit of $10,000? Marlrot noo
D.1.
D1.
2-19. Acellphonecompanyhasafixedcostof$1,500,000 per month and a variable cost of $20 per month per subscriber. The company charges $39.95 per month to its cell phone customers. (2.2) a. What is the breakeven point for this company? b. The company currently has 73,000 subscribers and proposes to raise its monthly fees to $49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10,000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable? 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.
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.
Iz01 @ uO 9:0 * ZAIN IQ l. A docs.google.com TU.4¬T IVU TO نقطتان Huawei Company produces mobile phones. Selling Price = $350/unit. Total Fixed expenses = $250,000 per month. Variable expenses $150 per unit. The B.E.P. in [Unit] is 1520 1052 1250 1255 ELä: An IT Proiect with MARR=10% If
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) Variable cost Per Unit (AED) Rent 70 Total fixed expenses per month are as follows: Expenses types AED Advertising Heating 30 457,816 100,000 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. What is the break-even price of the set?
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising 400,702 Rent 100,000 Heating 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
None
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising 257,364 Rent 100,000 Heating 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
APPLICATION • Alta Production, Inc., is using the account analyis approach to identify the beharior of production costs for a month in which it prodaced 350 units. The production manager was asked to review these costs and provide her best guess as to how they should be catevorized. She resoonded with the followine information: Tetal fe) S270,000 134,000 101.000 $507.000 Variable (e) S270,000 130,000 100,000 3500.000 Fixed Materials used in production Labor used in production Production facility costs Total production cost 4.000 3.000 37.000 • Alta Production, Inc., reported the following production costs for the 12 months January through December. Reporting Period (Month) Total Production Costs Level of Activity (Units Produced) January $460,000 300 February 300,000 220 March 480,000 330 Аpril 550,000 390 570,000 310,000 May 410 June 240 July 440,000 290 August 455,000 320 September 530,000 380 250,000 150 October November 700,000 450 December 490,000 350