SOLVE FOR F....Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $95,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $45,000 per month, but a variable cost of $2.00. Selling price is $2.80 per bag. d) What is the break-even point in units with the Hi-Speed shredder? e) What is the break-even point in dollars with the Hi-Speed shredder? f) What is the monthly profit if the company selects the Hi-Speed shredder and sells 70,000 bags per month?
SOLVE FOR F....Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $95,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $45,000 per month, but a variable cost of $2.00. Selling price is $2.80 per bag. d) What is the break-even point in units with the Hi-Speed shredder? e) What is the break-even point in dollars with the Hi-Speed shredder? f) What is the monthly profit if the company selects the Hi-Speed shredder and sells 70,000 bags per month?
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
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SOLVE FOR F....Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $95,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $45,000 per month, but a variable cost of $2.00. Selling price is $2.80 per bag.
- d) What is the break-even point in units with the Hi-Speed shredder?
- e) What is the break-even point in dollars with the Hi-Speed shredder?
- f) What is the monthly profit if the company selects the Hi-Speed shredder and sells 70,000 bags per month?
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