How much capacity has been used? d. If the variable cost is increased to $55, what is the percent reduction (or increase) to the profit? What is the break-even point in units now?
How much capacity has been used? d. If the variable cost is increased to $55, what is the percent reduction (or increase) to the profit? What is the break-even point in units now?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 12P
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Need Help for Lettter C and D please.!!
PROBLEM #3
A plant operation has fixed costs of $2,000,000 per year,
and its output capacity is 100,000 electrical appliances
per year. The variable cost is $40 per unit, and the
product sells for $90 per unit.
a. What is the break-even point in terms of units?
b. What is the break-even point in terms of dollars?
c. How much capacity has been used?
d. If the variable cost is increased to $55, what is the
percent reduction (or increase) to the profit? What is
the break-even point in units now?
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