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- 4) A company produces a chemical at a rate of 1000 tons/year with a planned sale price of 0.8 TL / kg. The fixed cost is 60000 TL/year and direct production is 5.5 x 106 TL/year at full capacity. Determine the direct product cost per unit product (TL /kg). Find the breakeven capacity of the company for this product. Draw breakeven chart according to determined results in (ii). Calculate the new breakeven point if the price of the product decreased to 0.5 TL/kg.Ima Newworker requires 43 minutes to produce her first unit of output. If her learning curve rate is 76%, how many units will be produced before the output rate exceeds 5 units per hour?Garber Furniture manufactures beds selling for $529 each. Variable costs per unit are $187 for direct material, $165 for direct labor, $44 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs for production overhead are $200,000 and for selling and administrative costs $124,000. What is the number of units required to breakeven? 2,436 units 2,492 units 1,831 units 2,746 units 612 units Onone of the above / listed
- A product that has a list price by the company to be 589 while the variable cost of manufacturing is 340. 1. What is the fixed cost per year that the company can afford to breakeven with sales 9000/year? 2. If the fixed cost of the company is actually 750,000 per year, what is the profit at a sales level of 7000 units?Determine the minimum-cost trade-off between the MTBF and the MTTR for a system requiring 0.98 availability. The MTTR must be between 10 and 28 hr, and the MTBF must be at least 1200 hr. Consider the cost functions as: a. C(x) = 0.0002x2 ; C(y) = 12500/y b. C(x) = 2x; C(y) = 2000-y 2.Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?
- What are the Flaws in Project Ranking by IRR?Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $340,000 each. The fixed construction cost for the upper deck area is estimated to be $5,780,000, with a variable cost of $170,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? x = (b) Preliminary drawings for the stadium show that space is available for the construction of up to 52 luxury boxes. Promoters indicate that buyers are available and that all 52 could be sold if constructed. (ii) What profit is anticipated? (Enter a negative value if a predicted loss.) $A manufacturing company needs to know whether to produce components for a Bird Feeder in-house or buy the components from a fabricator. To make the components in-house, the company needs to buy an injection molding machine, which costs $9,000. The company expects to produce 10,000 units per year. The following estimates have been made: Fixed cost per year Variable cost per part Make $9,000 $6.45 Buy. $0 $7.20 a. What is the break-even point? b. If the number of units produced is 10,000, which option is cheaper: Make or Buy? Explain why. b. If the number of units produced is increased to 12,500, which option is cheaper: Make or Buy? Explain why.
- In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some examples of fixed costs that change over time.An architect-engineering firm is planning a parking lot to accomodate 400 vehicles. Each parking space will be 8.5 feet x 15 feet. It has been estimated that the space required for aisles will be 70 percentage of the space required for parking. A local paving company charges 8$ per square foot for paving and a flat fee of $10,600 for marking and painting the individual parking spaces. Based on this information, what is the estimated cost of paving and marking this parking lot? The estimated cost of paving and marking the parking lot is: $ ?Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5 = $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?