Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $4,500, and the vanable costs are $3.90 a unit a. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any Quantity Total Revenue Variable Costs Fixed Costs S S $ 0 1,000 1,500 2,000 $ S 2,500 3,000 S $ Quantity $ S Total Revenue 5 S $ 5 S $ $ S S S $ $ $ $ Fixed Costs Total Costs b. Determine the break even level using the above table and use the Exhibit 19.5 to confem the break even level of output. Round your answers for the break-even level to the nearest amber Round your ers for the fixed costs, ariable costs, total costs, and profes (losses) sign enter losses, arest dollar Enter ere) Variable Costs Profits (Losses) $ S Total Costs S $ $ S Profits (Losses) $ What would happen to the total revenue schedule, the total cost schedule, and the break even level of output if management determined that feed costs would be $7,000 stead of $4,5007 Round your answer for the break even level of output to the whole number If foed costs were $7,000 instead of $4,500 the total revenus scheduk

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $4,500, and the variable costs are $3.90 a unit.
a. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your
answers to the nearest dollar Enter zero if necessary. Use a minus sign to enter losses, if any
Quantity
Variable Costs
Fixed Costs
0
500
1,000
$
$
$
S
2,500 $
3,000 S
1,500
2,000
Total Revenue
S
Quantity
$
$
Total Revenue
$
$
$
$
$
$
$
$
$
S
Fixed Costs
$
$
Total Costs
b. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break even level of output. Round your answers for the break-even level to the nearest
whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary Use a minus sign to enter losses, if
any
Variable Costs
Profits (Losses)
S
$
Total Costs
5
$
$
$
Profits (Losses)
$
What would happen to the total revenue schedule, the total cost schedule, and the break even level of output if management determined that fixed costs would be $7,000 instead of
$4,5007 Round your answer for the break even level of output to the nearest whole number
If fixed costs were $7,000 instead of $4,500 the total revenue schedule Select
and the total cost schedule elect
The new break even level of output i
Transcribed Image Text:Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $4,500, and the variable costs are $3.90 a unit. a. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar Enter zero if necessary. Use a minus sign to enter losses, if any Quantity Variable Costs Fixed Costs 0 500 1,000 $ $ $ S 2,500 $ 3,000 S 1,500 2,000 Total Revenue S Quantity $ $ Total Revenue $ $ $ $ $ $ $ $ $ S Fixed Costs $ $ Total Costs b. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary Use a minus sign to enter losses, if any Variable Costs Profits (Losses) S $ Total Costs 5 $ $ $ Profits (Losses) $ What would happen to the total revenue schedule, the total cost schedule, and the break even level of output if management determined that fixed costs would be $7,000 instead of $4,5007 Round your answer for the break even level of output to the nearest whole number If fixed costs were $7,000 instead of $4,500 the total revenue schedule Select and the total cost schedule elect The new break even level of output i
Expert Solution
steps

Step by step

Solved in 5 steps with 11 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education