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Cebu Tire and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At present, it is operating at 62% capacity. The firm’s annual income is P 416,000. Annual fixed costs are P 192,000 and the variable costs are equal to P 0.356 per unit of product. (a) What is the firm annual profit or loss? (b) At what volume of sales does the firm break-even?
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- The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000 7000 6000 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 40 Units (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR Percent of capacity= 50 60 TC If the selling price per unit is $50, and the variable cost per unit is $40: FC 70 80 90 100 enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)The figure shows graphs of the total cost function and the total revenue function for a commodity. (Assume cost and revenue are measured in dollars.) 500 400 300 200 100 میرا 10 20 30 (a) Label each function correctly. function A -Select- function B -Select- (b) Determine the fixed costs. (c) Locate the break-even point. A B 40 50 60 Determine the number of units sold to break even. units (d) Estimate the marginal cost MC and marginal revenue MR. MC = MR-Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
- Tandem Bikes manufactures exercise bicycles built for two. It sells a cycle for $196 (custom painted in your color choice). The costs associated with Tandem's production are: Fixed costs (per year) Administrative labor $50000 Variable Costs per bike Materials $30 Mfg. Labor Assembly labor Packing material Packing labor Shipping cost ТОTAL Utilities 5000 24 Plant Overhead 65000 $120000 8 3 ТOTAL Note: this is $10000 per month. 10 $77 1. Find the monthly breakeven quantity using the above data. 2. Express monthly breakeven dollar sales (using the quantity calculated in #1). 3. The cost of utilities doubles (annual fixed costs are now $125000 which is $10416.67 per month). What is the new monthly breakeven quantity? 4. What is the Contribution Margin Ratio (CMR), using the costs used in #3? 5. You believe you can sell only 80 bikes a month. Using the costs from #3, what price must be charged per bike to break even selling only 80 bikes per month? 6. Using the original selling price of…For a table manufacturing company, selling price for a table is $188.00 per Unit, Variable cost is $28.00 per Unit, rent is $4, 670.00 per month and insurance is $ 271.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $350.00 per Unit, Variable cost to $48.00 per Unit, bigger area will have rent $6, 537.00 per month and insurance is $406.00 per month At what point will the company be indifferent between the current mode of operation and the new option?(ii) Calculate total profit for this firm.
- Tatal Fixed | Tatal Cast (TFC) Tatal Cast cast (TVC) (TC) Ouput AFC AVC ATC | MC Variable (TPP) 40 70 85 96 104 110 140 170 185 196 204 2 110 2 15 100 2. 100 100 4. 100 100 T00 6 7 100 15 100 120 220 TDO 100 j00 100 126 134 145 226 234 245 12. 100 100 260 280 13 180 14 is 306 2016 239 280 330 390 461 544 339 380 430 490 561 100 17 100 T00 18 19 20 100 100 644When the production volume (Q)is 50 units the total costs (TC)is (1500)omani RIyals and fixed costs (900) Riyals. Calculate the Average Variable costs AVC ?accounting profit by Weplit costs wn $160,000 and implick costs are $72,000, economic profit is
- A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 340 220 Material Cost /unit (in dollars) 220 190 150 90 Labor Cost/unit (in dollars) 90 65 65 50 Table 1 a) Develop a joint total revenue function for sales of the four different models. b) Develop an annual total cost function for manufacturing the four models. c) Develop the profit function for sales of the four models. d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models?The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 Dollars (8) 2000+ 7000- 6000 5000 000 3000 2000 1000+ -10 -1000+ 10 20 30 (a) What is the break-even point? e.g. (295,7650) (b) What are the fixed costs? $ TR TC If the selling price per unit is $70, and the variable cost per unit is $30: Percent of capacity= FC 40 50 60 70 80 90 100 Units enter the answer in the form (x,y) (c) If the maximum production capacity of the commodity is 100, express the break- even units as a percent of capacity? % (round to two decimal places if necessary)A company has a production capacity of 500 units per month and its fixed costs are P 250,000 a month. The variable costs per unit are P 1,150 and each unit can be sold for P 2,000. Economy measures are instituted to reduce the fixed costs by 10% and the variable cost be 20%. Determine the old and new break-even point, old and new monthly profit at 100% capacity.