Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. $159 $91 $428,400 c. Sales level in units that Ender must reach to earn a profit of $204,000. d. Determine the margin of safety in units, sales dollars, and as a percentage.

Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. $159 $91 $428,400 c. Sales level in units that Ender must reach to earn a profit of $204,000. d. Determine the margin of safety in units, sales dollars, and as a percentage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Milford Industries provides medical equipment to oncology and surgical units in major hospitals.…

A: To determine the indirect cost rate, we need to divide the total IDC allocation by the total direct…

Q: a. What is the value of AC at economic capacity in each of the three plants? Plant 1: Plant 2: Plant…

A: Economic capacity refers to the level of production where average costs (AC) are minimized. Looking…

Q: nswer the question on the basis of the following cost data. Output Total Cost 0 $ 50 1 60 2 68 3 73…

A: The objective of the question is to calculate the average variable cost (AVC) of producing 4 units…

Q: Solve it correctly Q)Transtech sells its product for $100. Marginal cost is a constant $70 per unit…

A: Given, Transtech sells its product for $100. Marginal cost = $70 per unit Fixed costs =70,500

Q: Q4: A project is considered to last for 10 weeks with a budget of $1,600,000. The cost behaviour of…

A: Cumulative cost variance considers the whole venture financial plan versus cost up a particular…

Q: •• S7.23 An electronics firm is currently manufacturing an item that has a variable cost of $.50 per…

A: The given details are that the fixed cost is $14,000 and the variable cost is given to be $0.50 per…

Q: Evaluate the range of profitable demand for a new project by, EWALL Pvt. Ltd. The variable cost (c,)…

A: General cost function: TC =TVC+FC; where TC is the Total cost, TVC is the total varable cost and FC…

Q: 1. A chemical company produces sodium bisulfate in 100-pound bags. Demand for the product is 40…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Total Total MarginalMarginal Revenue Cost Revenue Cost Quantity (TR) (TC) Profit (MR) (MC) 0 0 8 1 8…

A: MR is calculated as a change in total revenue by a change in quantity. MC is calculated as a change…

Q: Answer the questions below on the basis of the diagram. t per unit $10 9 8 7 6 5 ….... AN MC ATC AVC

A: Total costs TC equals TFC plus TVC. Total fixed costs (TFC) are the total payment of the firm on…

Q: The manager of a dessert cafe wants to determine the necessary volume of sales dollars next month to…

A: There are three categories of goods - Desserts , Liquor & Coffee Following are production and…

Q: A shoe company manufactures and sells a pair of shoes with the following cost and revenue data:…

A: here we calculate the quantity would the company have to sell to have a profit of AED 1,50,000 by…

Q: a. What is the value of AC at economic capacity in each of the three plants? Plant 1: Plant 2: Plant…

A: a. What is the value of AC at economic capacity in each of the three plants?Economic capacity refers…

Q: Categorize each cash flow. Purchase of a new control system. V [ Choose ] Disposal cost Operation…

A: Product sales is REVENUE. Purchase of a new control system is an INVESTMENT COST.

Q: Your marketing research department has estimated the demand for your firm's product to be:…

A: The firm will produce where the marginal revenue is equal to marginal cost to maximize its profit.…

Q: AR Q 4- The average cost and average revenue functions for a particular brand of mobile phone are…

A: The cost structure of a firm plays an important role in determining the profits of a firm. Lower the…

Question

Information concerning a product produced by Ender Company appears here:
Sales price per unit
Variable cost per unit
Total annual fixed manufacturing and operating
costs
Required
Determine the following:
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $204,000.
d. Determine the margin of safety in units, sales dollars, and as a percentage.
Req A to C
$159
$91
Complete this question by entering your answers in the tabs below.
D
$428,400
a. Contribution margin
b. Break-even in units
c. Break-even in units to earn profit of $204,000
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $204,000.
per unit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: STEP 1

VIEW

Step 2: STEP 2

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

6. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $5,000. The price-demand relationship for this product is P = -0.2D + 220, where P is the unit sales price of the product and D is the annual demand. Find the breakeven quantity. Total cost = Fixed cost + Variable cost Revenue = Demand x Price Profit = Revenue - Total cost
2) Alcem Pte. Ltd. Is in the business of manufacturing cement. The company sets up a 1 million ton plant. The total cost of setting up the plant is $100 million. The cost of Raw material/ Labor etc for producing 1 ton of cement is $ 40. The price of Cement is $80 per ton. Assume a Capital Cost of 10% (which is also its opportunity cost) a) What is the breakeven quantity of cement for Alcem? 250,000 tons b) In the short run, below what price should Alcem shut down? $40 c) If Alcem produces and sells 1 million tonnes of Cement, what is the Economic Profit it is making? $30 million d) If there are no barriers to entry in this business what would you expect
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?
Question 1! RUSTIC CABIN-Cost breakdown for 2,000ft2 cabin. Estimate: $250,000. COST ITEMS PERCENT OF TOTAL COST 1. Construction permits, legal, and title fees 2. Roadway, site clearing and preparation 15 3. Foundation, concrete and masonry 13 4. Wallboard, carpentry, and flooring 12 5. Heating, ventilation, air conditioning (HVAC) 13 6. Electric, plumbing and communications 10 7. Roofing and flooring 12 8. Painting and finishing 17 100 What is the price per sq. ft. of the 2,000ft? cabin? $100 $150 $125 $135
E. A company is evaluating the profitability of a new product. The company must rent a space that will cost $50,000 a month, $25,000 a month in equipment rental, and monthly overhead cost of $20,000. It also costs $1000 in labor and $750 in materials to produce each unit. The company thinks the product will sell for $1975 each. How many units will the company need to produce and sell to break even? How many units will the company need to sell if it wants to earn profit of $10,000? Marlrot noo
D1.
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost perbarrel is $16. Price is related to demand according to the following linear equation.v -75,000 1,153.8pDevelop the nonlinear profit function for the brewery and determine the price that will max-imize profit, the optimal volume, and the maximum profit per year.
8
Match the terms in the first column with the appropriate definition in the second column.
If the firm chooses a single, profit maximizing price, how manyunits will it sell?
2. A local company assembling stereo cassettes produces 300 units per month at a cost of P 800 per unit. Each stereo radio cassette sells for P 1,200. If the firm makes a profit of 10% on its 1,000 shares with a par value of P 200 per share, and the fixed costs are P 20 million per month. (a) What is the break-even point? (b) How must is the loss or profit if only 100 units are produced in a given month? Answer: [(a) 50 units per month; (b) P 3,300 per month]