HW 1 BEP Problem 2 Fixed Production LevelFixed costs = $ 30/hrVariable cost = $16/hr +2,500Semivariable cost = $14/hour + $500Required Return = $3,000Tax rate = .40Revenue = $15/unitProduction Units = 1,000 unitsTime period = 200 hoursFind the following four break-even points innumber of hours:Shutdown point:Break-even at costs:Break-even at required return:Break-even at required return after taxes:Find the profit for time period of 100 hours indollars:

Answered: Find the following four break-even…

Find the following four break-even points in humber of hours: Shutdown point: Break-even at costs: Break-even at required return:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

HW 1 BEP Problem 2 Fixed Production Level
Fixed costs = $ 30/hr
Variable cost = $16/hr +2,500
Semivariable cost = $14/hour + $500
Required Return = $3,000
Tax rate = .40
Revenue = $15/unit
Production Units = 1,000 units
Time period = 200 hours
Find the following four break-even points in
number of hours:
Shutdown point:
Break-even at costs:
Break-even at required return:
Break-even at required return after taxes:
Find the profit for time period of 100 hours in
dollars:

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