A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense What is the total amount of variable cost incurred if the company produces and sells 11,800 units? Multiple Choice O $17,700 $147,500 Amount per Unit $ 7.00 $ 4.00 $ 1.50 $165,200 $5.00 $3.50 $ 2.00 $ 1.00 $ 0.50

A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense What is the total amount of variable cost incurred if the company produces and sells 11,800 units? Multiple Choice O $17,700 $147,500 Amount per Unit $ 7.00 $ 4.00 $ 1.50 $165,200 $5.00 $3.50 $ 2.00 $ 1.00 $ 0.50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In Sheridan Company, total materials costs are $37,600, and total conversion costs are $61.560 for…

A: Materials Cost per unit = Total Materials Costs / Number of Units =$37,600/10,000 =$3.76…

Q: Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit…

A: Formula where; D= annual demand S= Ordering cost H= Holding cost C= Per unit cost Here; Holding…

Q: A trailer manufactor has multiple products designed to be towed by a pickup (Ford F-150, Toyota…

A: The breakeven point is the degree of production at which the costs of production equivalent the…

Q: Classify the cost elements shown below for the Impressive Printing Company into the proper quality…

A: Cost element cost AmountCustomer complaint remakes28,300Printing plate revisions25,700Quality…

Q: The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x-0.1x² + 0.0005x³…

A: Cost: Cost refers to the expenses or expenditures incurred by a business or individual to produce…

Q: A Company has the following data to produce one piece of product. Marketing and administrative cost…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month…

A: Break-even point is the point where the economic profit is 0, Where total revenue is equal to the…

Q: Which calculations would be used to estimate resource costs for 12 months

A: The objective of the question is to understand the calculations required to estimate the resource…

Q: When the production volume (Q)is(100)units the total costs (TC)is (1500)omani RIyals and fixed costs…

A: The variable cost can be calculated as follows:

Q: An automobile company has two version of the same model car for sale, a two-door coupe and the…

A: Linear programming is a computational optimization approach employed for determining the best…

Q: The following table lists the components needed to assemble an end item, lead times (in weeks), and…

A: Given that, lead time for End item = 1 week highest lead time for components L, C, and K = 3 weeks…

Q: Number of TVs Per Day Total Cost Per Day 0 $100 1 $180 2 $220 3 $300 4 $400 5 $520 6 $660 The…

A: Average total cost = Total cost / output

Q: 1 Vehicle purchase. A student living in Lower Hutt is considering the purchase of a new vehicle. An…

A: (a) Decision and environment variablesThe decision variables in this problem are the type of vehicle…

Q: 8.1 The fixed costs at Harley Motors are $1M annually. The main product has revenue of $9.90 per…

A: Breakeven Quantity=Fixed Cost/(Revenue per unit-Variable cost per unit)

Q: Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production…

A: The selling price per unit is the amount of money a buyer will pay for one unit of a product.…

Q: What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x…

A: Origin Pick Up Fee: The first component of the total cost is the origin pick-up fee. This fee is…

Q: For a table manufacturing company, selling price for a table is $188.00 per Unit, Variable cost is…

A: Here we have to calculate the point where the company will be indifferent between the current mode…

Q: Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of…

A: The measure that depicts the point total cost is in turn equal to the total revenue is known as the…

Q: Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200…

A: Break-even Analysis- Breakeven is the point at which a firm must cover its costs of production.…

Q: A company produces a single, high-volume product. One year its production volume was 780,000 units,…

A: The objective of the question is to calculate the average cost per unit produced by the company. The…

Q: A buyer placed an initial order with a supplior named Ronco that makes brakn assenblies. The order…

A: Given the costs and the productivity improvement. Calculate the impact of productivity improvement…

Question

A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit
costs are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
What is the total amount of variable cost incurred if the company produces and sells 11,800 units?
Multiple Choice
O $17,700
$147,500
Amount per
Unit
$ 7.00
$ 4.00
$165,200
$ 1.50
$5.00
$3.50
$ 2.00
$ 1.00
$ 0.50

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

No AI answer should not found plagiarism in your answer
• Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $ 10,000• Forgone rent $ 10,000• Raw materials $ 50,000• Other payments $ 20,000• Forgone interest $ 7,000 ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level.
The AVC at 2 units is:A) 80;B) 35;C) can not be determined;D) 70;E) 40.
If total revenue is $3600 and the per unit price is $30 What is the output sold
Assume you were hired as a Production Engineer in a global Bearing Manufacturer company and given the following inputs: Equipment Maintenance Cost per Month Utilities Cost per Month Material Cost per Unit Labor Cost per Unit Selling Price per Unit S60,000.00 $12,000.00 $12.00 $3.00 $24.00 Calculate Total Fixed Cost per Month = Calculate Total Variable Cost per Unit = Calculate number of Units to be sold to reach Break-Even Point = Calculate number of Units that must be sold to eam profit of $90,000.00 =
The variable cost for the small business is shown below. What is the marginal cost and average cost at a volume of 14 units? Cost $8000 $6000 $4000 $2000 $200/unit Volume marginal cost: $200/unit, average cost: $476/unit O marginal cost: $200/unit, average cost: $300/unit O None of them marginal cost: $300/unit, average cost: $800/unit $300/unit 10 Total cost Variable cost Fixed cost 15
F Given Cost and Revenue functions C(q)=q³-8q² +59q + 5000 and R(q) = -3 -39² +2600q, what cost is incurred when marginal profit is $0? The costs are $ (Round to nearest cent.)
The cost, in millions of dollars, of building a three-story high school in NewYork State was estimated to be:   2C x x x x      1.7 0.14 0.0001 20 400where x is the number of thousands of square feet. Suppose that you arecontemplating building a for-profit three-story high school and estimate thatyour total revenue will be $0.2 million dollars per thousand square feet.(a) What is minimum area for a three-story high school in New YorkState, that this model covers? (b) What is the variable cost of building a three-story high school in NewYork State? (c) What is the fixed cost of building a three-story high school in NewYork State? (d) Determine the profit function,P x( ), for building a three-story highschool in New York State? . (e) Determine,P(250) , for building a three-story high school in New YorkState, and interpret the result. (f) How many thousands of square feet should a three-story high schoolbuilding in New York State be in order to break even?
A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month per customer. The company charges $37 5 per month to its cell phone customers. a. What is the breakeven point for this company?
A cost function is given. C(q) = 3600 + 5q-0.02q² + 0.00039³ (a) Find the average cost and marginal cost functions. +5 -0.02q +0.0003q average cost 3600 9 marginal cost 5 -0.04q+0.0009q (b) Use graphs of the functions in part (a) to estimate the production level that minimizes the average cost. (Round your answer to the nearest integer.) 194 ✓ units (c) Use calculus to find the minimum average cost. (Round your answer to two decimal places.) $ 32.41 X (d) Find the minimum value of the marginal cost. (Round your answer to two decimal places.) $ 4.56
Engineering economy: The fixed costs incurred by the engineering department are $280,000 per year. Variable costs are 20% of the annual revenue. If annual revenue is $560,000, determine the annual profit or loss.
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.