A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

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: Total profit: $ Total costs/revenues The graph below shows the TC and TVC curves of Galbraith's…

A: Maximizing profits within a company, output is the degree of production that yields the maximum…

Q: Gomez runs a small pottery firm. He hires one helper at $12000 per year, pays annual rent of $5000…

A: Accounting profit is the net profit of a firm which is total revenue minus explicit costs. Economic…

Q: Bradley Inc. has the capacity to make 100,000 windows. Bradley is currently operating at 80%…

A: As shown below, determining whether Bradley Inc. has enough capacity is done. This is done in order…

Q: The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a…

A: Average total cost refers to the approximate total cost of production at different levels of…

Q: A strawberry farmer owns a farm named BLB. To keep costs manageable so she can provide affordable…

A: Since it has not been specified which questions are to be answered, the first question and its first…

Q: SleazeCo manufacturers wind turbines (that produce electricity) for sale in Texas. They currently…

A: Given Information Demand curve of SleazeCo P = $350,000-5q Marginal Revenue function MR = $350,000…

Q: 8. Suppose that the firm in problem 7 can purchase a new productive technology that costs an…

A: cost of production refers to the monetary value incurred in the production process. it is the…

Q: L'a i a b. Write the tangency condition for a minimum of long run total cost, LTCmin- C= 'WL+ rk ( W…

A: Given production function Q=L1/2K1/2 .... (1) Isocost line equation: C=wL+rK

Q: ABC is a small business producing instructional modules for disabled children in public schools. The…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: Complete the table below. Show formulas/Work q 0 1 2 3 4 LO 5 TVC 50 MC 10.0 AVC TFC 6.7 TC 10.0…

A: Total revenue is the product of price and quantity. Profit is the difference between total revenue…

Q: VannasBrew produces raspberry lemonade and sells it competitively. To secure its activity,…

A: Since the question you have posted consists of multiple parts, we will answer the first two parts…

Q: A specialty coffeehouse sells Columbian coffee for $7 per pound at a fairly steady rate of 320…

A: GIVEN : Selling Price, S.P = $7 per pound Annual Demand, D = 320 pounds Cost of beans, C = $1.80 per…

Q: Teasha Pratt will graduate from high school next month and cannot decide what she wants to do. She…

A: The objective of the question is to understand the economic decisions and resources involved in…

Q: Refer to the diagram below to answer the questions. Assume there is only one cable firm. 3.1) If…

A: Answer: (3.1). Normal profit: it is the situation where the average total cost is equal to the…

Q: explain why spacex has the characteristics of a monoply structur

A: The markets are the place where the economic transactions between the buyers, and sellers takes…

Q: Zippy's economic profit (or loss) in the first year is $. (round your answer to the nearest dollar.…

A: An economic profit is the difference between the revenue a commercial entity has received from its…

Q: 2. Classify the following items as start-up costs or operating expenses or both for a carpenter. nom…

A: 2) The process of creating goods and services to suit human needs is known as production. A product…

Q: VC TC

Q: An ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000…

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

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: Given Quantity Total Cost 0 12 1 14 2 18 3 24 4 32 5 42 6 54 7 68 Market…

Question

A leading shoe manufacturer produces a pair
of Lebron James signature shoes at a labor
cost of P 900.00 a pair and a material cost of
P 800.00 a pair. The fixed charges on the
business are P 5,000,000 a month and the
variable costs are P 400.00 a pair. Royalty to
Lebron James is P 1,000 per pair of shoes
sold. If the shoes sell at P 5,000 a pair, how
many pairs must be produced each month for
the manufacturer to break-even?

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

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Renewable And Exhaustible Natural Resources

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

Please give me correct answer with carefully draw and full explanation and calculation otherwise i give downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Marginal Profit Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: • a weekly demand of 313 at a price of $13 per toaster • a weekly demand of 202 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,379 and variable costs (cost per unit) will be $4. Assume: • the relationship between price and demand is linear the cost function in linear Use your models to predict the marginal profit when Yaster is producing and selling 261 toasters per week. Round to the nearest cent. $ per toaster
Please provide answer with explanation
The total profit equation for the firm is p =-500-25x-10x^2 -4xy-5y^2+15y ;x +y =100 .where x and y represents output levels.Us8ng substitution method determine the profit maximizing output levels for x and y .
Global Corp. sells its output at the market price of $13 per unit. Each plant has the costs shown below Units of Output Total Cost ($) 0 8 1 11 2 17 3 26 4 38 5 53 6 71 7 92 What is the breakeven quantity? Enter 0 if total profit is always negative. Please specify your answer as an integer. What is the breakeven revenue? Enter 0 if total profit is always negative. Please specify your answer as an integer. What is the profit at each plant when operating at its optimal output level? Please specify your answer as an integer. How many units of output should each plant produce? Please specify your answer as an integer.
No hand written solution and no image
Q3 need in 10 minutes
1 Question 1 Derive the equation for and plot AFC(q), AVC(q), AC(q), and MC(q) for the following cost func- tions. 1. C(q) = 10 + 10q 2. C(q) = 10 + 10q + 2q² 3. C(q) = 800 +0.55q2.67
Jerry Maguire is making two products Abra and Cadabra in its plant location in Smallville. The cost data for the products are listed below Selling Price Variable Cost O $128,000 O $230,000 O $142,500 Abra $60 $30 FIXED Cost / Quarter $30,000 The company made 4,500 units of Abra and 1,500 units of Cadabra respectively last quarter, what is the profit made? O $132,000 Cadabra $30 $25