Please answer the question with the parts, just select please. Answer only if you’re 100% sure about your answer Your company is manufacturing a complex partfrom an advanced material and is consideringan upgrade to the current machine. Twooptions are available - the breakeven analysisfor both is shown in the graph.1.25E+06-Option One-Option TwoRevenue (R) [$]1.00E+067.50E+055.00E+052.50E+050.00E+000.0E+005.0E+041.0E+051.5E+052.0E+052.5E+05Amount of Material Processed (A) [kg]Cost (TC) or Revenue (R) [$] E6A If the company can make 350 kilograms every day using Option 1 and 200 kilograme esday using Option 2, which option will breakeven in the shortest time?a) The must make the same amount of product of to breakevenb) Option 1c) Option 27. Select the phrase that completes the following sentence so it is TRUE.At 1.5E5 kilogramsa) Both machines are operating at a lossb) Option 1 will make more profit than option 2c) Option 2 will make more profit than option 1d) Both machines will make the same amount of profit8. At 2.5E5 kilograms, how much profit in dollars will Option One make?7.5E41E51.5E53E54.5E5 5.5E59E5 1E69. If management chooses Option Two, but wants the process to breakeven at 5E4 kilograms,what must the selling price in units of dollars per kilogram be set at to achieve this?0,1,3,4,6,OR710. If the variable cost of Option 1 is decreased by $0.50 per kilogram and all othervariables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms?A) it will decrease B) It will increase C) It will not change11. If the sales price is increased by $0.75 per kilogram and all other variables remain thesame, what will happen to the profit of Option 1 at 2.5E5 kilogramsA) it will decrease B) It will increase C) It will not change12. If the fixed cost of Option 1 is decreased by $5E5 and all other variables remain thesame, what will happen to the profit of Option 1 at 2.5E5 kilograms?A) it will decrease B) It will increase C) It will not change

(Note: Since there are multiple parts, only the first three have been solved). A firm attains…

#6 day using Option 2, which option will breakeven in the short a) The must make the same amount of product of to breakeven b) Option 1 c) Option 2 7. Select the phrase that completes the following sentence so it is T

#6 day using Option 2, which option will breakeven in the short a) The must make the same amount of product of to breakeven b) Option 1 c) Option 2 7. Select the phrase that completes the following sentence so it is T

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please answer the question with the parts, just select please. Answer only if you’re 100% sure about your answer

Your company is manufacturing a complex part
from an advanced material and is considering
an upgrade to the current machine. Two
options are available - the breakeven analysis
for both is shown in the graph.
1.25E+06
-Option One
-Option Two
Revenue (R) [$]
1.00E+06
7.50E+05
5.00E+05
2.50E+05
0.00E+00
0.0E+00
5.0E+04
1.0E+05
1.5E+05
2.0E+05
2.5E+05
Amount of Material Processed (A) [kg]
Cost (TC) or Revenue (R) [$]

E6A If the company can make 350 kilograms every day using Option 1 and 200 kilograme es
day using Option 2, which option will breakeven in the shortest time?
a) The must make the same amount of product of to breakeven
b) Option 1
c) Option 2
7. Select the phrase that completes the following sentence so it is TRUE.
At 1.5E5 kilograms
a) Both machines are operating at a loss
b) Option 1 will make more profit than option 2
c) Option 2 will make more profit than option 1
d) Both machines will make the same amount of profit
8. At 2.5E5 kilograms, how much profit in dollars will Option One make?
7.5E4
1E5
1.5E5
3E5
4.5E5 5.5E5
9E5 1E6
9. If management chooses Option Two, but wants the process to breakeven at 5E4 kilograms,
what must the selling price in units of dollars per kilogram be set at to achieve this?
0,
1,
3,
4,
6,
OR
7
10. If the variable cost of Option 1 is decreased by $0.50 per kilogram and all other
variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms?
A) it will decrease B) It will increase C) It will not change
11. If the sales price is increased by $0.75 per kilogram and all other variables remain the
same, what will happen to the profit of Option 1 at 2.5E5 kilograms
A) it will decrease B) It will increase C) It will not change
12. If the fixed cost of Option 1 is decreased by $5E5 and all other variables remain the
same, what will happen to the profit of Option 1 at 2.5E5 kilograms?
A) it will decrease B) It will increase C) It will not change

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