The following information is for the Jeffries Corporation: Product A: Revenue $14.00 Variable Cost $9.00 Product B: Revenue $26.00 Variable Cost $11.00 Total fixed costs $388,500 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? OA. 77,700 units of A and 0 units of B OB. 12,950 units of A and 38,850 units of B O C. 14,942 units of A and 4,981 units of B OD. 38,850 units of A and 12,950 units of B

The following information is for the Jeffries Corporation: Product A: Revenue $14.00 Variable Cost $9.00 Product B: Revenue $26.00 Variable Cost $11.00 Total fixed costs $388,500 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? OA. 77,700 units of A and 0 units of B OB. 12,950 units of A and 38,850 units of B O C. 14,942 units of A and 4,981 units of B OD. 38,850 units of A and 12,950 units of B

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: A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit…

A: In microeconomics theory, the opportunity cost of a particular activity is the value or benefit…

Q: 1. Use the following information to fill in the gaps in the table. MPC is constant, and investment,…

A: Answer: The formula of MPC: MPC=Change in consumptionChange in incomeMPC at…

Q: Graphed below is a company's cost function for producing premium wooden shoe horns. Quantity of Shoe…

A: The money spent to purchase the factor of production to produce the final goods and services is…

Q: 8.1 The fixed costs at Harley Motors are $1M annually. The main product has revenue of $9.90 per…

A: Breakeven Quantity=Fixed Cost/(Revenue per unit-Variable cost per unit)

Q: A certain seed and fertilizer company compiled the following estimates for its operations. Capacity…

A: The total amount of money received from the sale of goods or services connected to a business's main…

Q: When using the Top-down Cost Estimation Approach.. Note: This is a Multiple Answer question. Select…

A: The top-down cost estimation approach is a tool used by upper-level management to estimate the total…

Q: Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of…

A: The measure that depicts the point total cost is in turn equal to the total revenue is known as the…

Q: Specialty Metal Products, Inc. manufactures filters for use in custom over-the-range hoods. The…

A: The potential gain that is forfeited when one investment strategy is chosen over another is known as…

Q: Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200…

A: Break-even Analysis- Breakeven is the point at which a firm must cover its costs of production.…

Q: For a vending machine project, the site cost=5,000 SR/month, material cost=0.5 SR/unit, and…

A: Unit Contribution: The profit earned from each unit sold after covering the variable costs.

Q: Classification analysis as the method for approximation of variable and fixed costs a) Is using for…

A: Production and cost constitute the two basic economic concepts that impact business choices and…

Q: The following data relate to factory overhead cost for production of 7,000 computers Actual Variable…

A: Answer 1)

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: Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed…

A: Break-even analysis entails calculating and examining the margin of safety for an entity based on…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

The following information is for the Jeffries Corporation:
Product A: Revenue
$14.00
Variable Cost
$9.00
Product B: Revenue
$26.00
Variable Cost
$11.00
Total fixed costs
$388,500
What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B?
OA. 77,700 units of A and 0 units of B
OB. 12,950 units of A and 38,850 units of B
OC. 14,942 units of A and 4,981 units of B
OD. 38,850 units of A and 12,950 units of B

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

I need help understanding how to solve this
Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
2-19. Acellphonecompanyhasafixedcostof$1,500,000 per month and a variable cost of $20 per month per subscriber. The company charges $39.95 per month to its cell phone customers. (2.2) a. What is the breakeven point for this company? b. The company currently has 73,000 subscribers and proposes to raise its monthly fees to $49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10,000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Tomas Ocampo has just been appointed chairperson of the Accountancy Department of ADEB College. In reviewing the department’s cost records, Tomas has found the following total cost associated with MAS Part 2 subject over the last several terms: Semester/Term Number of Subjects Offered Total Cost AY2004, First Semester 4 P10,000 AY2004, Second Semester 6 14,000 AY2004, Summer 2 7,000 AY2005, First Semester 5 13,000 AY2005, Second Semester 3 9,500 Tomas knows that there are some variable costs, such as amounts paid to student assistants, associated with the course. He would like to have variable and fixed cost components separated for planning purposes. Using the least-squares method, what is the variable cost per section of MAS?