Therapeutic Systems sells its products for $23 per unit. It has the following costs Rent Factory labor Executives under contract Raw material $ 195,000 $9.00 per unit $365,500 $ 2.20 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $23, compute the break-even point. Note: Do not round intermediate calculations. Break-even point units

Therapeutic Systems sells its products for $23 per unit. It has the following costs Rent Factory labor Executives under contract Raw material $ 195,000 $9.00 per unit $365,500 $ 2.20 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $23, compute the break-even point. Note: Do not round intermediate calculations. Break-even point units

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 4P: The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of...

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
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Shock Electronics sells portable heaters for $49 per unit, and the variable cost to produce them is $29. Ms. Amps estimates that the fixed costs are $100,800. a. Compute the break-even point in units. Break-even point b. Fill in the following table (in dollars) to illustrate that the break-even point has been achieved. Sales Fixed costs Total variable costs Net profit (loss) units $ 0
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Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product follow. Selling price Variable costs Machine hours (a) Product Basic $42.0 $24.0 0.5 Deluxe $55.0 $29.4 x Your answer is incorrect. 0.8 Compute the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic 40 $ Deluxe 51 F
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