A manager has the option of purchasing 1, 2, or 3 machines. The computed VC is 10perunitandrevenueperunitis40. FC and potential volumes are as follows:   # of Machines Fixed Cost Range of Output 1 $  9,600 0-300 2   15,000 301-600 3   20,000 601-900 a. Determine the BEP of each range using the formula. b. If the annual demand is between 580 to 660 units, how many machines should the manager purchased?

Q: Use the following information for the next 2 questions (8 & 9). Division X produces and sells a…

A: The price which is used by various departments in an organization in their transactions is said to…

Q: if a product total fixed cost is 50,000 and its variable cost is 28500 for 9500 units what should be…

A: Variable costs per unit = Total variable cost / no. of units  = 28500/9500 = 3 per unit

Q: If breakeven point is 1,100 units, each unit sells for $32, and fixed costs are $20,000, then on a…

A: The objective of the question is to understand the representation of the breakeven point, selling…

Q: Assuming that the company’s monthly demand is 10,000 units of Product x and y, which mathematical…

A: Solution: As total demand of x and y is maximum 10,000

Q: Given the following information, what is th Variable cost per unit $100 Unit selling price per unit…

A: Solution: PV ratio is the profit volume ratio. It is the ratio of change in profit due to change in…

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Actual sales = OMR 490000 Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable…

Q: Sheridan Company is using the target cost approach on a new product. Information gathered so far is…

A: The target cost is the maximum amount that a company  will incur on a product, project, or service…

Q: A to make or buy the managed is im dilemma of whether product. Suppose item is purchased tham cost…

A: The objective of this question is to determine whether it is more cost-effective for the firm to…

Q: Using the variable cost concept, determine the selling price for 28,400 units using the following…

A: Variable cost means the cost which vary with the level of output. Fixed cost remain fixed whatever…

Q: The annual demand for a particular chemical product is 1,200 units. Suppose that the annual holding…

A: Economic Order Quantity (EOQ) = 2AOC Where, A = Annual Consumption  O = Ordering Cost C = Carrying…

Q: If Actual sales are OMR 480000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: SOLUTION CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT - VARIABLE PRICE PER UNIT .   SALES…

Q: If Actual sales are OMR Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable…

A: The margin of safety when added to the breakeven point gives the total sales.

Q: Assume the following: 1. selling price per unit = $25 2. variable expense per unit = $13 3. the…

A: Unit sales  relate to the total  volume of units of a product or service that a company sells within…

Q: Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net…

A: 1. Breakeven point is the point where there is no profit and loss. At this point the company has…

Q: Xyz Company sells 20000 units SP per unit is 12= VC per unit is 9/= Fixed cost for the period…

A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…

Q: Company XYZ has total fixed costs of $5,000. Assume a selling price per unit of $8 and total…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin…

A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…

Q: A firm produces according to the following production function: F(L,K)=L0.7K0.3. The price of…

A:

Q: Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed…

A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…

Q: .. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of…

A:

Q: The BEP is 5000 units, the price per unit is P60 and the variable cost per unit is P20. What is the…

A: Formulas: Break even point = Fixed costs /Contribution margin per unit  where, Contribution margin…

Q: What is the break-even price?

A: It is pertinent to note that break-even point is the point where the entity does not make any profit…

Q: Based on analyzing the production cost (Y) to units produced (X), the following relationship was…

A: The costs of production can be largely divided into two parts- Fixed cost and variable costs Fixed…

Q: Assume the following (1) total sales = $200,000 (2) breakeven sales = $120,000, and (3) total fixed…

A: The break-even sales are the sales where the business earns no profit or loss during the period. The…

Q: What is the optimal order quantity?

A: Economic order quantity is the optimal order quantity that a business should order to save ordering…

Q: If you have the following cost equation Y = 3000 + 10 *X units produced 1500 units. The fixed cost…

A: COST FUNCTION Y=a+ b*x y= Total cost a= Total fixed cost b= variable cost per unit x= Total number…

Q: Suppose a manufacturer finds that the cost y of producing x units is given by a formula of the form…

A: An expense known as a fixed cost is one that is constant regardless of changes in sales or…

Q: Assume fixed costs $825,000. Selling price = $15.25 and variable costs - $8.25. Calculate the dollar…

A: Derired profit per unit = Selling price x 11.1% = $15.25 x 11.1% = $1.69275

Q: A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Qd…

A: To find the firm's total marginal cost function, you need to sum up the marginal costs of both…

Q: B\ If the variable cost per la gorts fixed costs, and total costs if production is

A: solution given Variable cost 10 per unit Fixed cost of production 2000   Number…

Q: Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are…

A: The question is related to the Revenue function. Revenue - Cost = Profit

Q: If the sales price is $60 per unit, the variable cost is $10 per unit, total fixed costs is $60,000,…

A: Contribution margin per unit = Sales price - Variable cost Contribution margin per unit = $60 - $10…

Q: Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8 - 0.4q Marginal…

A: Present Value (PV), also known as Present Discounted Value. It is a financial concept used in time…

Q: Bronco Truck Parts expects to sell the following number of units at the prices indicated under three…

A: In this question, we are required to determine the expected value of sales projection. We will use…

Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15, contribution margin (CM) Omr 30…

A: Margin of safety(in value) = Profit/PE ratio

Q: Total Variable cost is 560,000 OMR total units sold is 7000 units, total fixed cost is 160000…

A: We know that variable cost changes with the change in the amount of activity and fixed cost remains…

Q: Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is…

A: Solution: Variable cost per unit = P50 Fixed costs = P70,000 Let nos of units = x

Q: If Actual sales are OMR 460000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Martin of safety means sales revenue which is over and above break even sales revenue. Break even…

Q: If Sales are OMR 400000, Variable cost OMR 320000, Fixed cost OMR 100000. Which of the following…

A: Contribution margin = Sales - Variable cost = OMR 400000 - OMR 320000 = OMR 80000