You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a product is Php 20.00. The sale price for each product will be Php 60.00. If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money? 1. Complete the Table below 2. Compute for the Break Even point 3. Make a Line Graph to show break even 4. Explain the scenario VOLUME 6,000 6,500 7,000 8,000 8,500 9,000 9,500 11,000 12,000 14,000 15,000 16000 18000 18500 20000 SALES Variable Cost Fixed Cost Total Cost PROFIT

You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a product is Php 20.00. The sale price for each product will be Php 60.00. If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money? 1. Complete the Table below 2. Compute for the Break Even point 3. Make a Line Graph to show break even 4. Explain the scenario VOLUME 6,000 6,500 7,000 8,000 8,500 9,000 9,500 11,000 12,000 14,000 15,000 16000 18000 18500 20000 SALES Variable Cost Fixed Cost Total Cost PROFIT

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

See similar textbooks

Related questions

Q: Suppose you win a raffle held at a county fair and are given the choice between two different ways…

A: Present worth (PW) converts the set of future worth to the equivalent set of present sums in terms…

Q: Question 4 The equivalent rate of interest for a discount rate of 10.5% for 60 days is 104.9825%.…

A: The relationship between discount rate and interest rate is as follows: r=d1-dt where, d is the…

Q: You are serving as the chair for your community’s annual wellness campaign. A key event is the…

A: * Average variable cost:- When variable cost is divided by output amount, the result is the average…

Q: The average median 2019 price of a home here in Columbia, SC was around $145,000. That price is not…

A: Price of house = $145000 Interest rate on loan = 3.92% The time period for loan = 30 years

Q: The town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink…

A: Profits are maximised when marginal revenue equals marginal cost or when the difference between…

Q: 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the…

A: Given: The cost of operating a large ship (CO) varies as the square of its velocity (v);…

Q: In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under…

A: The universal existence of scarcity prevents an economic agent from carrying out an action…

Q: You and one of your classmates are considering setting up a prescription delivery service for local…

A: Equivalent Annual Cost refers to the cost per year incurred in operating and maintaining a certain…

Q: You are considering investing in ICI. Suppose ICI is currently undergoing expansion and is not…

A: Dividend in year from 1 to year 4 = $3 Dividend in 5th year = 3×1+30% = 3.9 Dividend in 6th year =…

Q: You are the owner of a large data-services firm and are deciding on the purchase of a new…

A: Net present value refers to the variance between the present value of cash inflow and the present…

Question

SAMPLE PROBLEM:
You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you
forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a
product is Php 20.00. The sale price for each product will be Php 60.00.
If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money?
1. Complete the Table below
2. Compute for the Break Even point
3. Make a Line Graph to show break even
4. Explain the scenario
VOLUME
6,000
6,500
7,000
8,000
8,500
9,000
9,500
11,000
12,000
14,000
15,000
16000
18000
18500
20000
SALES
Variable Cost
Fixed Cost
Total Cost
PROFIT

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: Defining Cost and Revenue Schedule.

VIEW

Step 2: Completing the Table.

VIEW

Step 3: Computing the Break-Even point and illustrating it.

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 1 images

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

Metropolitan Hospital has estimated its average monthly bed needs as N=1,000+9X where X=timeperiod(months);January2002=0 N=monthlybedneeds Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years: Forecast Metropolitans bed demand for January, April, July, November, and December 2007. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?
Has the natural gas revolution in the United States made coal-fired power plants more or less profitable? Why or why not?
Plot the logarithm of arrivals for each transportation mode against time, all on the same graph. Which now appears to be growing the fastest?
Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.
The economic analysis division of Mapco Enterprises has estimated the demand function for its line of weed trimmers as QD=18,000+0.4N350PM+90Ps where N=numberofnewhomescompletedintheprimarymarketarea PM=priceoftheMapcotrimmerPS=priceofitscompetitorsSurefiretrimmer In 2010, 15,000 new homes are expected to be completed in the primary market area. Mapco plans to charge $50 for its trimmer. The Surefire trimmer is expected to sell for $55. What sales are forecasted for 2010 under these conditions? If its competitor cuts the price of the Surefire trimmer to $50, what effect will this have on Mapcos sales? What effect would a 30 percent reduction in the number of new homes completed have on Mapcos sales (ignore the impact of the price cut of the Surefire trimmer)?
What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If that issue affected resale value at year 5, would that affect perceived value-in-use? How exactly?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Again, holding the other variables constant, what would be the saving in per-student operating expenditures of an increase in enrollment from 500 to 1,000?