Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. 25 O b. 50 O c. None of the given answers O d. 60 O e. 30

Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. 25 O b. 50 O c. None of the given answers O d. 60 O e. 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a) What is the optimal volume of sprinklers? b) Does Smith make a profit at that volume? Thank you.
The annual fixed costs for a given factory are $150,000, the variable cost is $30 per unit and the selling price is $50 per unit. If the production capacity for this factory is 10,000 units per year, how many units should be made to have an annual profit of $25,000? * 7,500 10,000 8,750 7,850 5,700 None
In a firm which manufactures wooden tables, it is estimated that its total revenue function is as follows: TR = 165Q – 5Q². Also, variable costs are estimated to be £5.00 per unit (Q) and the fixed costs will be £300 per week. a. Using breakeven analysis, derive the cost and profit functions. b. Calculate the maximum profit that can be obtained, stating the number of sales units and the selling price necessary to achieve this profit. c. Graph the profit function. Clearly indicate the roots and a maximum/minimum point where appropriate.
How many umbrellas would be required to sell to earn an operating profit of P1, 000, 000 if the XYZ Company sells this product with the following information: 11,250 units 20,000 units 15,000 units 45,000 units
skip if you already did this or else downvote
a) After determining the total product cost of P100.00 per unit, Mr. Rick the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. b) What is the pricing strategy used by Mr. Rick? Briefly explain this pricing strategy. c) How many units must be sold for Mr. Rick to Break-even if Fixed Cost is Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php 5.00.
The information is as below: Month Units 1 1000 2 2000 3 3000 Calculate the minimum selling price per unit the company should charge to Break Even in month five (5) assuming production was increasing the same rate as the three months given. Variable cost per unit Total fixed costs Total costs K1,000,000 K1,200,000 K1,600,000 Fixed costs per unit Total variable costs
Given the following Total Cost = Q3-36Q²-156Q + 20000 FC = 20000 O True O False