A producer of ceramic toys is considering the addition of a new plant to absorb the backlog of demand that now exists .The primary location being now considered will have fixed costs of $9200 per month and variable costs of 0.70$ per unit produced .Each item is sold to retailers at an average price of 0.90$.(i) What volume per month is required for Break Even (ii) What profit is realized at a monthly volume of 87000 units (iii)What volume is needed to achieve a profit of $16000 per month (iv)What volume is needed to provide a revenue of $23000 per month

Q: Use the following data: Inflation Rate = 5% Shortfall = 6% of Y, Shock Inflation Rate = 2.5% %3D %3D…

A: The term ‘inflation’ refers to the rise(↑) in the price(P) of goods & services over a specific…

Q: A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit…

A: In microeconomics theory, the opportunity cost of a particular activity is the value or benefit…

Q: A company has established that the relationship between the sales price for one of its products and…

A: Profit maximizing level of output for a firm is at the point where marginal revenue (MR) equals…

Q: A company produces and sells hair dryers in a market where price (p) and demand (D) are related…

A: At breakeven point, a firm produces enough quantity of output from which it can recover its total…

Q: The variation of the total production cost with the production rate for a process is defined as…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A company produces and sells hair dryers in a market where price (p) and demand (D) are related…

A: The breakeven point of production is the quantity of output at which the producing firm earns no net…

Q: company has fixed costs of $1,200 per month and a selling price of $95 per nit. For an output level…

A: Profit = TR-TC. TC = TFC +TVC

Q: A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs a…

A: The revenue is defined as the total income a business receives from selling a good or service to its…

Q: A call center in India used by U.S. and U.K. credit card holders has a capacity of 1,500,000 calls…

A: Breakeven quantity of call will occur when  Total revenue = Total cost

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: Pearl Ltd. intends to manufacture and market mechanical weighing scales. Their research department…

A: Given information; x = 6200 - 50p C = 7400 + 70x Where x is the number of scales that can be sold at…

Q: Calculate output value if Total revenue is $2400  and price per unit is $60

A: According to the above given question, the values given are:- Total revenue = $2400 million Price…

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: A new product is introduced by Del Pilar, Inc. with a revenue function as follows, R(x) = -5x² + 39x…

A: Given information: R(x) = -5x2 + 39x  -----------> Revenue function C(x) = 4x + 30…

Q: Find total revenue if price per unit is $300 and the output is 19 units

A: The given information is as follows:- Price per unit = $300  Output sold = 19 Units  Total revenue…

Q: A company estimates that the relationship between unit price and demand per month for a new product…

A: Given, p=$100-$0.10DFixed cost = $15,972 per monthvariable cost = $ 45 per unit

Q: XY Inc. sells 800 units/month at $50 each, with a $19 per-unit cost and $2,175 monthly fixed costs.…

A: A business firm experiences two kinds of costs in the short-run. One is variable cost which varies…

Q: Calculate price per unit if output is 4

A: The information being given is:- Total revenue = $3200 Output = 4 units  We have to calculate total…

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: If the marginal cost is MC = 30'- +10, the fixed costs are 1, then the total cost TC= (A) Q'-e+100+5…

A: Given MC = Fixed costs = 1

Q: The revenue and cost functions for a particular product are given below. The cost and revenue are…

A: Given values; R(x) = −0.2x2 + 172x   C(x) = 78x + 10065

Q: A privately owned summer camp for youngsters has the following data for a 15- :weeksession Charge…

A: Given: Charge per camper=$130 per week Fixed Costs=$42,000 per session Variable cost per camper=$70…

Q: A manufacturer of a new patented product has found that he can sell 70 units a week to the customer…

A: 3120 is the total revenue-40*78=3120.

Q: Big Show drive-in has fixed costs of $ 6,916 per month and variable costs are $ 2.15 per ticket, if…

A: Fixed cost is independent of output produced.

Q: A magazine publisher reports that their revenue function and cost functions (in thousands of…

A: It can be defined as the tool to represent the revenue of a firm, industry, individual, or entity.…

Q: Solve this attachment.

A: The Break-even point of a firm occurs when the firm does not earn a profit or incurs a loss. It is…

Q: The manager of a dessert cafe wants to determine the necessary volume of sales dollars next month to…

A: There are three categories of goods - Desserts , Liquor & Coffee Following are production and…

Q: The total cost equation for a firm producing two products is TC(Q1, Q2) = 25 + Q12 + 4Q22 + 5Q1Q2…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: A shoe company manufactures and sells a pair of shoes with the following cost and revenue data:…

A: here we calculate the quantity would the company have to sell to have a profit of AED 1,50,000 by…

Q: Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed…

A: Break-even analysis entails calculating and examining the margin of safety for an entity based on…

Q: If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs…

A: If company A manufactures t-shirts and sells them to retailers for US$9.80 each.   It has fixed…

Q: A company sells one of its products for $10.40 per unit. Its fixed costs are $1,560 per month, and…

A: Initial Selling Price = 10.40 Fixed Cost = 1560 variable Cost = 3.90 Selling Price for Part B is…

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.