In a slow year, Deutsche Burgers will produce 3.8 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.8 million hamburgers at a total cost of $6.5 million. a. What are the fixed costs of hamburger production? b. What is the variable cost per hamburger? c. What is the average cost per burger when the firm produces 3 million hamburgers? d. What is the average cost per burger when the firm produces 4 million hamburgers? e. Why is the average cost lower when more burgers are produced?

In a slow year, Deutsche Burgers will produce 3.8 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.8 million hamburgers at a total cost of $6.5 million. a. What are the fixed costs of hamburger production? b. What is the variable cost per hamburger? c. What is the average cost per burger when the firm produces 3 million hamburgers? d. What is the average cost per burger when the firm produces 4 million hamburgers? e. Why is the average cost lower when more burgers are produced?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 6.2 million hamburgers at a total cost of $6.4 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced? a. Fixed cost million b. Variable cost per burger c. Average cost d. Average cost per burger per burger e. Why is the average cost lower…
In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 6.2 million hamburgers at a total cost of $6.4 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced? a. Fixed cost million b. Variable cost per burger per burger c. Average cost d. Average cost per burger e. Why is the average cost lower…
In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 5.2 million hamburgers at a total cost of $5.8 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced?
In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.4 million hamburgers at a total cost of $6.1 million. What are the fixed costs of hamburger production? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. What is the variable cost per hamburger? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the average cost per burger when the firm produces 2 million hamburgers? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the average cost per burger when the firm produces 3 million hamburgers? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Why is the average cost lower when more burgers are produced?
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A company is analyzing its break-even point for a product with a selling price of $63 per unit. The variable cost per unit is $42, and the fixed costs are $212,000 per year. If the company wants to achieve a profit of $57,000, how many units must it sell to meet this profit goal? Help
A company is analyzing its break-even point for a product with a selling price of $63 per unit. The variable cost per unit is $42, and the fixed costs are $212,000 per year. If the company wants to achieve a profit of $57,000, how many units must it sell to meet this profit goal? I want solve the problem
How many units must it sell?
A company is analyzing its break-even point for a product with a selling price of $63 per unit. The variable cost per unit is $42, and the fixed costs are $212,000 per year. If the company wants to achieve a profit of $57,000, how many units must it sell to meet this profit goal? I want solve the problem step by step
1. An ice cream producer has fixed costs of $70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs $10 in the market while the producer faces variable costs of $3 per tub. (a) What is the economic breakeven level of production? (b) Calculate the ice cream producer's monthly profits at full capacity. What would happen to the monthly profits if another ice cream producer entered the market, driving the price of the ice cream tubs down to $7 per unit? Support your calculations graphically.